Geojit has given Buy recommendation for Hindustan Unilever with a target price of Rs. 2630 in its research report issued on Jan 28, 2022
Geojit’s research report on Hindustan Unilever
Hindustan Unilever (HUL), a subsidiary of Unilever PLC, is India’s leading FMCG Company. It has over 35 brands spanning across 20 distinct categories, such as soaps, detergents, shampoos and skin care. Q3FY22 standalone revenue up 10.4% YoY to Rs. 13,092cr (+2.9% QoQ), driven by calibrated pricing actions to combat inflationary pressures. EBITDA margin expanded 90bps YoY to 25.0% despite cost inflation, largely owing to reduction in A&P spending and other expenses. Adj. PAT grew 4.8% QoQ to Rs 2,292cr (+16.8% YoY). With its strong brand power, diversified portfolio, increasing market share and wide distribution network, the company is well positioned to deal with near-term uncertainties.
Ongoing measures like grammage reduction on certain products will aid combat input cost inflation in future. We reiterate our BUY rating on the stock with a rolled forward target price of Rs. 2,630 based on 54x FY24E Adj. EPS.
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At 16:00 hrs Hindustan Unilever was quoting at Rs 2,327.95, up Rs 20.95, or 0.91 percent.
It has touched an intraday high of Rs 2,333.50 and an intraday low of Rs 2,296.00.
It was trading with volumes of 64,785 shares, compared to its thirty day average of 87,285 shares, a decrease of -25.78 percent.
In the previous trading session, the share closed up 1.44 percent or Rs 32.70 at Rs 2,307.00.
The share touched its 52-week high Rs 2,859.10 and 52-week low Rs 2,104.25 on 21 September, 2021 and 24 February, 2021, respectively.
Currently, it is trading 18.58 percent below its 52-week high and 10.63 percent above its 52-week low.
Market capitalisation stands at Rs 546,973.10 crore.