Anand Rathi has given Buy recommendation for Hindustan Unilever with a target price of Rs. 2371 in its research report issued on Jan 24, 2022
Anand Rathi’s research report on Hindustan Unilever
Hindustan Unilever Limited (HUVR) has reported a growth of 10.3% in its revenues at Rs.1,34,390 million in Q3-FY22 as against Rs.1,21,810 million in Q3-FY21. The domestic consumer growth during the quarter was 11% with underlying volume growth at 2%. The company has witnessed market share gains in all its business divisions and in both rural and urban market segments. The company’s EBITDA margins for the latest quarter stood at 25.4% at Rs.34,090 million as against 24.3% at Rs.29,630 million in Q3-FY21, an improvement of 104 basis points. The profit after tax (PAT) margins for the company stood at 17.3% at Rs.23,190 million as against 16% at Rs.19,540 million. The operating margins improved despite increase in raw material costs and inflationary pressures as company drove higher savings and undertook price increase.
We have updated our estimates factoring in latest numbers, we continue to remain positive on the company in the long run and maintain our BUY rating on Hindustan Unilever Limited (HUVR) with a target price of Rs.2,731 per share.