Hindustan Unilever Ltd. share price target

Hindustan Unilever (HUL)s performance for 3QFY2014 was slightly below consensus expectations. For the quarter, the companys top-line grew by 2.7% yoy to Rs7,981cr while the reported PAT grew ~6% yoy to Rs1,026cr. Key highlights: For 3QFY2016, HULs top-line rose by 2.7% yoy to Rs7,981cr. The soaps and detergents division posted a flat yoy growth due to weak macros. However, in the soaps segment, we saw some growth in Dove, Pears and Lifebuoy as well as double-digit growth in the liquids portfolio. The detergents segments saw double-digit growth in Surf and Rin. The personal products division posted a modest growth of 5.6% yoy. The reported growth of this segment was impacted by delayed winter and owing to one-time realignment of channel spends. In the beverages segment, the company reported a growth of 7% yoy primarily led by volumes, which were driven by activations and market development initiatives by the company. On the operating profit front, the company reported a de-growth of 0.5% yoy due to lower sales growth. Further, the operating profit margin fell by 52bp yoy to 16.5% due to increase in advertisement and other expenses. During the quarter, the company incurred Rs55cr under the exceptional items head, which factored...

Inspiring volume growth in a challenging environment Hindustan Unilever's numbers for 3QFY16 were largely in line with our estimates. While net sales came in line at Rs78.2bn (3.2% yoy growth), net profit before exceptional items grew 7.2% to Rs10.2bn, which was 2% below our estimate. Volume growth for the quarter came in at 6%, which is impressive given the challenging consumer demand environment. We expect revenue and earnings to grow at a CAGR of 9.1% and 10.3%, respectively through FY15-18E. The stock is currently trading at 35.8x...

HULs 3QFY16 results were below our estimates, as revenue grew by just 2.7% (to Rs 79.8bn)

HULs 3QFY16 results were below our estimates, as revenue grew by just 2.7% YoY (to Rs 79.8bn). This was led by 6% YoY volume growth in the domestic business. However, the impact of realisation drop, mix change and phasing out of excise benefits resulted in muted revenue performance.

8 Revenue growth was impacted by price deflation in commodityrelated categories (Soaps&DetergentsS&D;)anddecliningruralgrowth. 9 Volume growth of 6% yoy was better than we expected, indicating robust operating...

Indulekha acquisition to help HUL play in the premium naturals' segment: The brand IndulekhaBringhaOilisapremiumayurvedichairoilwithapresenceacrossKerala,Tamil Nadu,andKarnataka,andarecentforayintoMaharashtra.Asperthecompany,theproduct...

Missing market estimates, HULs 2QFY16 revenue grew at just 4.1% YoY to Rs 79.6bn. This was led by steady 7% YoY volume growth in its domestic business. However, adjusting for the transport strike in Q2FY15, the volume growth came at 6.5%.

Revenue growth (value and volume) was below our and consensus' expectations due to price cuts in some categories and subdued demand Segmental profits for Soaps & Detergents(S&D;) and Beverages saw yoy decline...

HUL's (Hindustan Unilever) result for the quarter was below our expectation. While Net sales for 2QFY16 grew by 4.7% to Rs78.2bn in line with our estimate, Net profit excluding exceptional items increased just by 1.4% to Rs9.7bn vs. our expectation of Rs10.5bn. However, we were impressed by the underlying volume growth for the quarter, which stood at 7% and was the highest in past 12 quarters. Net profit growth was lower as company diverted the savings in input costs towards higher A&P; spends. The stock is currently trading at price earnings multiple of 39.3x FY16E and 34.8x FY17E earnings, respectively. We have a NEUTRAL recommendation on...