Hindustan Unilever (HUL) share price shed over 2 percent in early trade on July 22 after the company declared its results for the quarter ended June 2020.
FMCG major on July 21 has reported a standalone profit of Rs 1,881 crore for the quarter ended June 2020, increasing 7.2 percent compared to the previous quarter.
Standalone revenue from operations during the quarter stood at Rs 10,560 crore, increasing 4.4 percent compared to Rs 10,114 crore in the corresponding period last year.
Overall numbers were ahead of estimates. Profit was expected at Rs 1,790 crore on the revenue at Rs 9,875 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Also Read - HUL Q1 profit up 7% at Rs 1,881 crore, volume contracts 7%; board announces dividend of Rs 9.50
Here's what brokerages are saying about the stock and the company:
Jefferies | Rating: Buy | Target: Raised to Rs 2,650 from Rs 2,525
The strong Q1 drives 2 percent EPS upgrades over FY21-22, while company beat our and consensus forecasts by a wide margin, said Jefferies.
The demand outlook is still uncertain with local level lockdown. Its overall A&P spends declined over 30 percent with sharper declines for the base business, reported CNBC-TV18.
CLSA | Rating: Downgrade to outperform from buy | Target: Rs 2,600
The business recovery in coming quarters is critical for valuation. CLSA expects turnaround with market share gains in health and hygiene portfolio.
Given the stock’s recent run, CLSA downgraded to outperform, while it remains a preferred consumer pick, reported CNBC-TV18.
ICICIdirect | Rating: Hold | Rating: 2410
The strong performance in an unprecedented quarter shows the resilience of the FMCG business. ICICIdirect expects HUL to be able to leverage structural demand trends in health & hygiene space with strong brands (Lifebuoy, Surf excel, Domex, Vim). It also expects strong growth in packaged foods, tea, coffee to continue in the medium term.
Motilal Oswal | Rating: Buy | Target: Rs 2,550
The outlook is gradually improving, with the discretionary part of the portfolio (15 percent of sales) gradually seeing recovery. In a period of relative normalcy, the company is likely to report superior earnings growth.
At 09:19 hrs, Hindustan Unilever was quoting at Rs 2,281.50, down Rs 37.60, or 1.62 percent on the BSE.
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