KR Choksey's research report on Hindustan Unilever
For Q4FY22, HUVR reported revenue growth of 10.7% YoY (2.4% QoQ) to INR 1,37,670 Mn driven by price hikes across categories. Volume remained flat for the quarter. For FY22, revenue stood at INR 5,24,460 Mn, a growth of 11.5% YoY. Q4FY22 EBITDA stood at INR 33,010 Mn (+8.5% YoY/-3.2% QoQ). EBITDA margins were 24%, down 49.8 bps YoY (-138.9 bps QoQ). For FY22, EBITDA stood at INR 1,28,570 Mn (+10.2% YoY). EBITDA margins were 24.5%, down by 2.1 bps YoY. Net profit stood at INR 23,020 Mn (+5.3% YoY/+0.2 QoQ), while NPM were at 16.7% (-87 bps YoY). For FY22, net profit stood at INR 89,620 Mn (+12.1% YoY) while NPM were 17.1% (+9 bps YoY). The Board proposed a final dividend of INR 19 per share. The total dividend for FY22 amounts to INR 34 per share.
Outlook
We maintain our rating on the stock as ‘BUY’. We expect Revenue/PAT to grow by 13.0%/13.2% CAGR over FY21-24E. We assign a P/E multiple of 57.5x to the FY24E EPS of INR 49.3 to arrive at a target price of INR 2,836 per share (unchanged) with an upside of 26.9%.
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