Hold Hindustan Unilever, target price Rs 2250: Emkay Global
Hindustan Unilever Ltd., incorporated in the year 1933, is a Large Cap company (having a market cap of Rs 507621.63 Crore) operating in FMCG sector.
By ETMarkets.com | Updated:
Promoters held 61.9 per cent stake in the company as of Sept 30, 2020 while FIIs held 14.5 per cent, DIIs 10.8 per cent and public and others 12.7 per cent.
Emkay Global has given a hold rating to Hindustan Unilever with a target price of Rs 2250. The share price moved down by 0.57 per cent from its previous close of Rs 2172.10. The stock’s last traded price is Rs 2159.70.
Hindustan Unilever Ltd., incorporated in the year 1933, is a Large Cap company (having a market cap of Rs 507621.63 Crore) operating in FMCG sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 11520.00 Crore, up 8.97 % from last quarter Sales of Rs 10572.00 Crore and up 15.70 % from last year same quarter Sales of Rs 9957.00 Crore Company reported net profit after tax of Rs 1974.00 Crore in latest quarter.
Investment Rationale The brokerage reduces FY21-23E EPS by 3-5%, factoring in the muted performance of the base business. It forecasts continue to reflect a strong recovery in growth and margins with FY22-23E sales/PAT CAGR of 12%/18%. HUL’s growth has been below peers and GSK integration benefits are largely priced in. At 44x FY23E EPS, the stock offers limited upside. It maintains Hold with a revised TP of Rs 2,250, based on 47x Dec-22E EPS. Promoter/FII Holdings Promoters held 61.9 per cent stake in the company as of Sept 30, 2020 while FIIs held 14.5 per cent, DIIs 10.8 per cent and public and others 12.7 per cent.
