Motilal Oswal has given Buy recommendation for Hindustan Unilever with a target price of Rs. 2700 in its research report issued on Jun 07, 2022
Motilal Oswal’s research report on Hindustan Unilever
Gaining market share: HUVR now has 16 brands with over INR10b in annual sales (v/s 14 brands in FY21). In FY22, its gain in market share was the highest in more than a decade. Strengthening its technological backbone: HUVR continues to evolve as a digitally capable enterprise, catering to emerging consumer needs. The core business continues to use analytics and machine learning to improve efficiency. It is leveraging economies of scale, while remaining nimble. HUVR has always been ahead of its peers in terms of technology adoption and analytics, and continues to widen its lead. -Bringing technology to general trade: HUVR’s B2B app – Shikhar – is now present in 800k outlets. The app enables zero-touch online ordering and has helped solve two of the biggest challenges that retailers face – capital (tie-up with SBIN for financing) and space (quicker inventory turnover with a faster fulfillment). Shikhar has been HUVR’s response to the increasing prevalence of new-age B2B distribution platforms. Its continued adoption by retailers will only strengthen its GT ecosystem.
HUVR is the best prepared among peers on the technology as well as the e-commerce strategy front to deal with potentially significant disruptions ahead. We maintain our Buy rating on the stock with a TP of INR2,700.