3, March, 2024
HomeBusinessSharekhan Recommends Buying Hindustan Unilever with a Target of Rs 2910

Sharekhan Recommends Buying Hindustan Unilever with a Target of Rs 2910

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Sharekhan expresses optimism on Hindustan Unilever (HUL) and issues a buy rating with a target price of Rs 2910 in its research report dated January 19, 2024.

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HUL’s Q3FY2024 results fell short of expectations, showing flat year-on-year revenues and PAT, coupled with a modest volume growth of 2%.

The operating profit margin (OPM) remained constant at 23.3%. Approximately 75% of HUL’s portfolio witnessed mid-single digit volume growth, with notable recovery in segments like homecare and personal care, particularly in hair care.

Premium products exhibited a 2.5x year-to-date growth compared to mass products. The anticipation of rural recovery is expected to enhance volume growth in the mass product portfolio and overall volumes. The company’s focus is on restoring gross margins to pre-COVID levels while foreseeing moderate expansion in EBIDTA margins in the medium term.

Despite a one-year underperformance and trading at 53x/44x its FY2025E/FY2026E earnings, considering near-term challenges, Sharekhan maintains a Buy recommendation on the stock with an unchanged price target of Rs. 2,910.

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Disclaimer: The opinions and investment advice provided by Sharekhan on Chennaiprint.in are independent and do not reflect the views of the website or its management. Users are advised to consult certified experts before making any investment decisions.

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