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Last Updated : Oct 16, 2019 04:17 PM IST | Source: Moneycontrol.com

Hold Hindustan Unilever; target of Rs 2075: ICICI Direct

ICICI Direct recommended Hold rating on Hindustan Unilever with a target price of Rs 2075 in its research report dated October 15, 2019.

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ICICI Direct's research report on Hindustan Unilever


After two quarters of moderation in volume growth, HUL’s volume growth remained on the slower path at 5%. Net sales increased 6.7% to Rs 9,852 crore while operating margins expanded 293 bps to 24.8% on account of tight control over operating costs in addition to Ind-AS 116 accounting effect. On a comparable basis, margins expanded 200 bps. Led by healthy sales growth, strong margins and lower corporate tax rates, net profit for the quarter grew 21.2% YoY to Rs 1,848 crore. The company has announced an interim dividend of Rs 11/share.


Outlook


However, valuations at 50x FY21E provide little headroom for strong upside. Hence, we maintain our HOLD recommendation with a target price of Rs 2075.


For all recommendations report, click here


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First Published on Oct 16, 2019 04:17 pm
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