ETMarkets.comWith long-term growth story intact, Sharekhan maintains its Buy recommendation on the stock with a reduced 12-month PT of Rs 2,810.

Sharekhan by BNP Paribas has buy call on Hindustan Unilever with a target price of Rs 2810. The current market price of Hindustan Unilever is Rs 2485.9.

Hindustan Unilever, incorporated in the year 1933, is a Large Cap company (having a market cap of Rs 583215.54 Crore) operating in FMCG sector.

Hindustan Unilever key Products/Revenue Segments include Personal Care and Other Operating Revenue for the year ending 31-Mar-2022.

Financials

For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 15375.00 Crore, down -2.11 % from last quarter Total Income of Rs 15707.00 Crore and up 11.04 % from last year same quarter Total Income of Rs 13846.00 Crore. Company has reported net profit after tax of Rs 2602.00 Crore in latest quarter.

The company’s top management includes Mr.Nitin Paranjpe, Ms.Kalpana Morparia, Dr.Sanjiv Misra, Mr.O P Bhatt, Mr.Leo Puri, Dr.Ashish Gupta, Mr.Wilhelmus Uijen, Mr.Dev Bajpai, Mr.Ritesh Tiwari, Mr.Sanjiv Mehta, Ms.Ashu Suyash. Company has BSR & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 235 Crore shares outstanding.

Investment Rationale

A recovery in the consumer demand will be supported by premiumisation and market development strategy to drive consistent revenue growth. The brokerage expects the OPM to gradually improve as some key inputs including palm oil, caustic soda and packaging material have corrected from highs and trading at lower level. Management has maintained its thrust on achieving double-digit EPS growth by achieving double digit revenue growth.

The stock has underperformed the broader indices for past one year and is trading at 53x/46x its FY2024E/25E earnings. With long-term growth story intact, Sharekhan maintains its Buy recommendation on the stock with a reduced 12-month PT of Rs 2,810.

Promoter/FII Holdings

Promoters held 61.9 per cent stake in the company as of 31-Mar-2023, while FIIs owned 14.36 per cent, DIIs 11.43 per cent.