HUL share price: Buy Hindustan Unilever, target price Rs 2750: ICICI Direct
The period given by the analyst is one year when the price of Hindustan Unilever Ltd. can achieve the defined goal.
Hindustan Unilever Ltd., incorporated in 1933, is a large cap company (with a market capitalization of Rs 621 994.91 Crore) operating in the FMCG sector.
The main product / revenue segments of Hindustan Unilever Ltd. include personal care products and other operating income for the year ending March 31, 2021.
For the quarter ended 30-06-2021, the company reported total consolidated income of Rs 12,260.00 crore, down -2.25% from last quarter total income of Rs 12,542.00 crore and in 12.63% increase over same quarter last year Total income of Rs 10,885.00 crore. The company reported after-tax net profit of Rs 2,100.00 crore in the last quarter.
Justification of the investment
HUL is likely to witness revenue growth of 14.8% at | 13,132 crore following a recovery in the home care, beauty and personal care segment. Base quarter revenue growth was stable for these segments. The acquired nutrition business is part of the food and refreshment segment. The brokerage is forecasting sales growth of 10.5%, 15.7% and 11.3% respectively in the home care, beauty and personal care and food segments. He estimates a contraction in gross margins of 100 basis points with a sharp increase in raw material costs. Operating margins are expected to contract 124 basis points in Q2FY22. Net profit is likely to grow 10% to Rs 2210.2 crore.
Promoter / FII Holdings
The promoters held 61.9% of the company’s capital as of March 31, 2021, while the FIIs held 15%, the DII 10.7% and the public and others 12.5%.
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