Moneycontrol PRO
Upcoming Event:Attend Quants League - 5 Days Live Algorithmic Options Trading Virtual Conference @ just Rs. 600/- brought to you by Moneycontrol Pro. Register Now!

Buy Hindustan Unilever; target of Rs 1165: Motilal Oswal

Motilal Oswal is bullish on Hindustan Unilever has recommended buy rating on the stock with a target price of Rs 1165 in its research report dated May 17, 2017.

June 08, 2017 / 07:03 PM IST
  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on Hindustan Unilever

Domestic consumer business rose 8% YoY, with underlying volumes growing 4% YoY (adjusted for pipeline correction, 2.5%-3% growth v/s est. of -0.5%). EBITDA increased by 12.2% YoY to INR 16.5b (est. of INR 14.6b) and adj. PAT by 6.2% YoY to INR 11.2b (1.4% above estimate).


With forecast of normal monsoon, HUL has all the levers for earnings revival in place, especially when allied with benefits of low base of preceding years, return of price part of sales growth, lower promotion spends, continuing premiumization and government schemes (DBT implementation, a 24% increase in rural outlay in the budget, farm loan waiver in Uttar Pradesh, etc.). Return ratios and dividend yield are best-of-breed. We target 45x FY19E EPS (5% premium to 3-year avg.), resulting in TP of INR 1,165.

For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

first published: May 18, 2017 03:38 pm

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark