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.
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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