Sharekhan is bullish on Hindustan Unilever Ltd has recommended buy rating on the stock with a target price of Rs 3185 in its research report dated October 20, 2021.
Broker Research
October 20, 2021 / 01:08 PM IST
buy_98315393
Hindustan Unilever Limited’s (HUL) Q2FY2022 operating performance was in-line with expectation with domestic revenue, growing by 11% to Rs. 12,724 crore, while PAT growth was moderate at 6% to Rs. 2,187 crore due to a 46 bps decline in OPM at 24.6%. Domestic volume growth stood at 4%, lower than expectation of 5-7%. Home care and beauty and personal care registered double-digit growth of 15% and 10%, respectively. Foods business growth stood at 7% on base of high teens growth. Rural demand has seen some moderation in the past few months, while urban demand has picked up due to improving mobility. OPM to remain at 24-25% in the near term.
Outlook
HUL’s Q2 performance was in-line with our as well as street’s expectation. With a strong brand portfolio, strong team with a great focus supported by R&D, and agile distribution and supply chain, HUL’s management is focusing on enhancing the shareholder’s value in the next decade. The stock has corrected by ~11% from its recent high and is currently trading at 53x and 45x its FY2023 and FY2024 earnings, respectively, factoring in near-term headwinds. We maintain our Buy recommendation on the stock with an unchanged PT of Rs. 3,185.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More
