HUL's valuation likely to remain expensive, says CLSA

The shares of Hindustan Unilever look expensive but it is likely to stay this way in the current uncertain times, said CLSA.

The firm has retained outperform rating on the FMCG company and raised target price to Rs 1,950 from Rs 1,650.

"...we acknowledge that the stock looks expensive but in current uncertain times, is likely to stay this way, particularly in the context of 18 per cent+ EPS growth in 19CL," said CLSA.


Hindustan Unilever reported 12 per cent volume growth in the first quarter while a favourable base helped, the numbers still represent strong execution, it added.

" Growth of 30 per cent+ in ad spend reflects a growth focus, despite which op margins continued to expand. Overall earnings growth of 21 per cent YoY met our ahead-of-consensus forecast yet was strong," the firm said.