Moneycontrol
Last Updated : Dec 05, 2018 03:57 PM IST | Source: Moneycontrol.com

Buy Hindustan Unilever; target of Rs 2071: Sharekhan

Sharekhan is bullish on Hindustan Unilever has recommended buy rating on the stock with a target price of Rs 2071 in its research report dated December 03, 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Hindustan Unilever


HUL will acquire 100% stake in GSK Consumers for a deal value of Rs. 31,700 crore. Under the share swap deal, GSK Consumers will get 4.39 shares of HUL for 1 share held (resulting in equity dilution of 8.5%). Though the swap ratio is favourable for GSK Consumers, the deal is EPS accretive for HUL as it brings in incremental PAT of Rs. 700 crore (13% up as per FY2018 financials), while equity capital gets diluted by just 8.5% due to the deal. Moreover, the company would further gain from synergy benefits and consolidate its leadership position in the high-growth and high-margin health food business.


Outlook


We maintain our Buy recommendation on the stock and upgrade the PT to Rs. 2,071.


For all recommendations report, click here


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

First Published on Dec 5, 2018 03:57 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant