Buy Hindustan Unilever; Target Of Rs 2440: Geojit
Geojit is bullish on Hindustan Unilever has recommended buy rating on the stock with a target price of Rs 2440 in its research report dated October 23, 2020.
Oct 26, 2020 / 01:32 PM IST
Geojit's research report on Hindustan Unilever
Hindustan Unilever (HUL), a subsidiary of Unilever PLC, is India’s leading FMCG Company. It has over 35 brands spanning across 20 distinct categories, such as soaps, detergents, shampoos and skin care. Q2FY21 standalone revenue rose 16.1%, primarily aided by improved sales from Food & Refreshments segment. EBITDA margin improved 30bps YoY to 25.1% mainly benefitted from Nutrition business (acquisitions). Excluding this impact, on a like-tolike basis, margin declined 60bps. Company is set to benefit from winter portfolio demand which usually picks up by September. Also, we expect non-staple demand to recover and production and supply-chain disruptions to subside post-lifting of lockdowns.
Hence, we upgrade our rating to a BUY on the stock with a revised target price of Rs. 2,440 based on 57x FY22E adj. EPS.
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