Motilal Oswal neutral on HUL

Published on Wed, Nov 04, 2009 at 16:32 |  Source : Moneycontrol.com

Updated at Wed, Nov 04, 2009 at 16:34  

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Motilal Oswal neutral on HUL

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Motilal Oswal has recommended a neutral rating on Hindustan Unilever , in its report dated November 3, 2009. The stock closed at Rs 277.85 on November 4, 2009.

"We are lowering volume growth estimates for FY10 from 4.6% to 3.5% for Hindustan Unilever. We are expanding gross margin estimates by 40 bps to 49% and EBIDTA margin estimates by 20 bps to 16.3%. We believe the coming quarters will be challenging for HUL as it strives to restrict its sliding market share in the mass category. We estimate PAT CAGR of 10% over FY09-11. HUL trades at 26.9x FY10E EPS of Rs 10.2 and 24x FY11E EPS of Rs 11.4. Maintain Neutral," says Motilal Oswal report.

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To read the full report click on the attachment.........

  

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