Motilal Oswal has given Buy recommendation for Hindustan Unilever recommended buy rating on the stock with a target price of Rs 2780 in its research with a target price of Rs. 2780 in its research report issued on Jun 17, 2021
Motilal Oswal’s research report on Hindustan Unilever
With various parts of India progressively opening up, the management believes the impact from the second COVID wave would have peaked in May’21 and things will progressively get better. The outlook from Jun’21 onwards is positive, barring the emergence of a third COVID wave. The increase in store operating hours is also a positive development. Rural continues to do better than urban, despite experiencing a higher impact from the pandemic in 1QFY22 v/s last year. Prediction of a normal monsoon, good Rabi harvest, favorably timed Kharif sowing, and MNREGA provide prospective support as well. The modern trade (MT) channel was affected.
HUVR’s best-of-breed analytics and execution capabilities (demonstrated via the successful implementation of its WIMI strategy, cost-saving plans, herbals, etc.) are key factors driving the pace of earnings growth. The strong outlook on rural, GSKCH synergies, and sustained growth and premiumization in Skin Cleansing offer further medium-term tailwinds. We maintain our Buy rating with a TP of INR2,780 per share.