Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Reduce Hindustan Unilever; target of Rs 2535: Dolat Capital Market

Dolat Capital Market recommended reduce rating on Hindustan Unilever with a target price of Rs 2535 in its research report dated January 27, 2021.

January 29, 2021 / 06:57 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital Market's research report on Hindustan Unilever


Revenues came ahead of our estimate but APAT was in line. Core business registered 7% sales growth - was a marginal beat. Beauty and personal care business reported 9.7% growth after 4 consecutive quarters of decline, was a positive surprise. Most discretionary categories witnessed revamp during the quarter. However, increase in RM and brand investment in key categories resulted in EBITDA margin contraction. We believe that the brand investment would help HUL in the long run. We have tweaked our FY21/FY22/FY23E EPS estimates to Rs 34.0/40.0/46.1 to factor in Q3 performance. Valuing the stock at 55x FY23E EPS, we have arrived at a TP of Rs 2,535.



Outlook


We Maintain Reduce. Considering recent run up in stock price, there is limited room for further upside. However, fundamentally, we see high growth prospects for HUL going ahead. Buy on dips.

Close

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: Jan 29, 2021 06:57 pm
Sections
ISO 27001 - BSI Assurance Mark