Motilal Oswal has given Buy recommendation for Hindustan Unilever recommended buy rating on the stock with a target price of Rs 3280 in its research repo with a target price of Rs. 3280 in its research report issued on Sep 11, 2021
Motilal Oswal’s research report on Hindustan Unilever
The management shared details on the augmentation of its analytics and R&D strengths, which were already far superior v/s peers. As highlighted in our Annual Report note, there have been a host of initiatives in the past year focusing on the burgeoning E-Commerce market, which now contributes 8–9% to HUVR’s sales. The company’s portfolio is already well-placed, with its E-Commerce market share higher than its Modern Trade (MT) market share, which, in turn, is higher than its General Trade (GT) market share. Winning in Many Indias (WiMI) has been a key factor driving volume growth and market share gains for the company in recent years. However, the localization of products as well as communication is only gathering further steam – of which the company stated several examples in the analyst meet in categories ranging from Foods to Beauty and Personal Care (BPC) – and ought to be a key driver of growth for many years to come.
Additionally, synergies from the GSKCH business would play a big role in the resumption of strong earnings growth going forward. There is no material change in our forecasts. We maintain a Buy rating, with TP of INR3,280 (60x Dec’23E EPS).