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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