Motilal Oswal has given Buy recommendation for Hindustan Unilever recommended buy rating on the stock with a target price of Rs 3200 in its research re with a target price of Rs. 3200 in its research report issued on Oct 19, 2021
Motilal Oswal’s research report on Hindustan Unilever
Hindustan Unilever (HUVR)’s 2QFY22 results were in line with our estimates. While domestic volume growth was weaker than expected at 4% for the quarter, strong realization growth actually led to a small beat on sales. While commodity costs remain elevated, we believe mix improvement would lead to continued sequential margin improvement. HUVR’s share of the Discretionary and Out-of-Home (OOH) portfolios (~15% of sales) is higher v/s peers. Moreover, these businesses have much higher margins than the rest of the portfolio. As a result, the earnings growth outlook from 2HFY22 is incrementally better v/s peers.
We maintain a Buy rating, with TP of INR3,200 (60x Dec’23E EPS).