Buy Hindustan Unilever; target of Rs 3050: Sharekhan

Sharekhan is bullish on Hindustan Unilever has recommended buy rating on the stock with a target price of Rs 3050 in its research report dated July 05, 2023.

Broker Research

July 06, 2023 / 10:32 IST

Buy

26 Aug, 2025 12:21

Volume

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Sharekhan's research report on Hindustan Unilever

The company achieved market share gains in 75% of its portfolio and maintained its leadership position in more than 85% of business. Surf Excel crossed US$1 billion annual turnover, while Lux and Pond’s crossed Rs. 2,000 crore turnover in FY2023. HUL strengthened its distribution network to 9 million outlets (2 million direct reach) in FY2023. Market development initiatives contributed ~Rs. 10,000 crore to the revenue (~17% of revenue). HUL maintained its strong cash flow generation, with FCF at Rs. 8,835 crore (FCF/EBIDTA of 62%); RoE increased to 20.3% in FY2023 from 18.4% in FY2022, while RoCE (ex-goodwill) improved to 38.5% in FY2023 from 36.1% in FY2022.

Outlook

We maintain a Buy rating on Hindustan Unilever Limited (HUL) with a revised PT of Rs. 3,050. With strategies in place and softening input prices, HUL is expected to deliver a revenue and PAT CAGR of 12-14% over FY2023-FY2025E. The stock trades at 58.8x/49.9x its FY2024E/FY2025E EPS.

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