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Last Updated : May 10, 2020 02:02 PM IST | Source: Moneycontrol.com

Buy Hindustan Unilever Limited target of Rs 2305: Sharekhan

Sharekhan is bullish on Hindustan Unilever Limited has recommended buy rating on the stock with a target price of Rs 2305 in its research report dated May 08, 2020.

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Sharekhan's research report on Hindustan Unilever Limited


The GSK Group sold 5.7% stake (13.37 crore shares) in Hindustan Unilever (HUL) through multiple block deals in the open market. This has reduced the supply overhang in the stock. The merger of GSK Consumer Healthcare's business with HUL will make the latter one of the largest players in the domestic foods space and would lead to earnings accretion of 4-8% over FY2021/FY2022. HUL’s stock price has corrected by ~16% from its recent high factors in the sluggish performance in Q4FY2020. With 50-55% of business catering to essential categories and the company’s strong direct distribution reach, we expect HUL to recover rapidly post the pandemic situation.


Outlook


HUL has a strong balance sheet with robust cash flows and goods dividend payout which makes it a safest bet in the uncertain environment. We maintain our Buy recommendation on the stock with unchanged PT of Rs. 2,305.


For all recommendations report, click here


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First Published on May 10, 2020 02:02 pm
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