Prabhudas Lilladher has given Buy recommendation for Persistent Systems with a target price of Rs. 2502 in its research report issued on Jan 27, 2021
Prabhudas Lilladher’s research report on Hindustan Unilever
We remain constructive on HUL post 3Q Concall given improving growth outlook led by 1) Robust growth across Health, Nutrition and Personal care, 2) Increasing distribution reach, 3) Strong portfolio of new products in Hygiene, Nutrition and Personal care 4) restoration of supply chain 5) higher share in distribution platforms of future (MT and e-com) and 6) Synergy benefits from GSK merger. We expect steady built up in growth momentum led by increase in demand for discretionary, out of home and Nutrition. Although HUL has undertaken 5% price increase in Personal wash and upto 15% price increase in Tea, its strategy of share gain with aggressive pricing will pay off in coming years.
We expect near term margin pressure in select categories of Tea and P wash, however worst seems over given F&R margins in 3Q (ex GSK) at just 8-9% (Est). We estimate CAGR of 11.6/15.7/18.2% in Sales, EBIDTA and EPS over FY21-23. Retain Buy with DCF based target price of Rs2502.