Brokerages preserve ‘purchase’ on HUL, see 16% EPS progress


Mumbai: Most brokerages have maintained ‘purchase’ ranking on fast-paced shopper items main Hindustan Unilever (HUL) after the corporate reported robust December quarter earnings. Shares of ended up 2.68% at ₹2,322.20 on Friday.

“HUL is healthier positioned in India FMCG, given longevity of earnings progress, higher preparedness to deal with disruptions, profit from a price-straddle method, and up to date share positive factors,” mentioned CLSA, sustaining an ‘outperform’ ranking with a goal value of ₹2,725.

Vintage Inventory Broking, Nomura, Jefferies, Investec and Edelweiss have maintained ‘purchase’ rankings on the inventory.

Hindustan Unilever on Thursday reported a 18.7% enhance in consolidated web revenue to ₹2,300 crore for the December quarter. The corporate had posted a web revenue of ₹1,938 crore in the identical interval of the earlier monetary 12 months.

Brokerages highlighted considerations over stress on volumes and margins on account of surging inflation. Axis Capital has upgraded the inventory saying that it will choose sector chief Hindustan Unilever on this inflationary state of affairs.

ET Bureau

“Whereas weak quantity progress and RM (uncooked materials) inflation is a headwind within the close to time period, HUL ought to ship 16% EPS compounded annual progress price over FY22-24,” mentioned Jefferies.

Investec and Morgan Stanley have discount targets by 8% every. The slowdown in market progress signifies that quantity progress for the sector for the subsequent few quarters might be difficult however Hindustan Unilever is healthier positioned given its management place and diversified portfolio, mentioned Investec.

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