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.
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.
We maintain our Buy recommendation on the stock and upgrade the PT to Rs. 2,071.
For all recommendations report, click here
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