Sharekhan's research report on Hindustan Unilever
Hindustan Unilever Limited’s (HUL) Q3FY2021 operating performance was largely in-line with expectation with 21% growth in revenue (core business growth of 7%) and OPM at 24.1% (operating profit grew by ~17% and adjusted PAT grew by 15.6%). Volume growth in domestic business improved to 4% from 1% in Q2FY2021 (was in-line with street expectation of 4%-5%). 80% of essential portfolio grew by 10%, discretionary recovered to almost 100%. Rural India continues to grow in double digits. Management is optimistic of delivering better performance in Q4 because of improved demand environment.
We broadly maintainour estimates for FY2022/FY2023. HUL remains one of our top picks in the large-cap space. We maintain Buy with an unchanged PT of Rs. 2,790.