Time period given by analyst is one year when Hindustan Unilever Ltd. price can reach defined target.
Hindustan Unilever Ltd., incorporated in the year 1933, is a Large Cap company (having a market cap of Rs 618916.94 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 12260.00 Crore, down -2.25 % from last quarter Total Income of Rs 12542.00 Crore and up 12.63 % from last year same quarter Total Income of Rs 10885.00 Crore. Company reported net profit after tax of Rs 2100.00 Crore in latest quarter.
Investment Rationale
HUVR’s Q1FY22 numbers came in lower than our estimates. Including GSK-CH, revenue/ EBITDA/APAT grew 12.8%/7.7%/4.4% YoY. The domestic business grew 12%, backed by 9% volume growth. Health, hygiene and nutrition (85%) grew 8%, while discretionary (12%) grew 39%. The OOH business (3%) grew 91%, albeit on lower base. Gross margin contracted 139bp to 50.4% due to inflationary costs in top-3 commodities – tea, crude oil (LAB), and palm oil (PFAD). The rise in employee cost (+4.4%), ad-spend (+28.5%) and other expenditure (+5.6%) restricted EBITDA growth at 7.7%, while EBITDA margin shrank 114bp to 23.9%. Management maintained its cautiously optimistic outlook on demand, given the surge in Covid (second wave) cases, yet raised concerns on margins.
Promoter/FII Holdings
Promoters held 61.9 per cent stake in the company as of March 31, 2021, while FIIs held 15 per cent, DIIs 10.7 per cent and public and others 12.5 per cent.
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