HUL Q1 Results Review - Inline; Price Run-Up Leads To Rating Downgrade: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.Hindustan Unilever Ltd.'s Q1 FY24 operating performance was in-line with our estimate. Underlying Volume Growth came in slightly better at 4% (2-year CAGR at ~3.5%) versus our estimate of 2.5%. Miss on Food and Refreshments segment was offset by better growth in Home Care which saw strong UVG. Skin cleansing is seeing early green shoots in bars indicating positive results from recent actions (pricing, innovation, promotion). HUL's Management believes it has gained market share in its key segments of mass detergent, tea and skin care. While we expect UVG to improve through the course of the fiscal, flattish pricing (negative pricing in H1 offset by low single digit pricing in H2) and no major improvement in Ebitda margins from current levels of 23-24% (even while raw material remains benign) does not build into strong earnings growth for FY25. We roll-forward our target price to Sep’26E EPS, giving us a revised target price of Rs 2,845. Recent run-up makes us downgrade our rating a notch to Neutral. .Click on the attachment to read the full report:.HUL Q1 Results Review - Inline Show; Earnings To Further Improve In H2: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HUL Q1 Results Review - Inline; Price Run-Up Leads To Rating Downgrade: Yes Securities

The brokerage expects HUL to deliver 7.6% revenue CAGR over FY24-26E as volume is recovering gradually in the very near term and overall pricing remains negligible.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

HUL Q1 Results Review - Inline; Price Run-Up Leads To Rating Downgrade: Yes Securities

The brokerage expects HUL to deliver 7.6% revenue CAGR over FY24-26E as volume is recovering gradually in the very near term and overall pricing remains negligible.

Choose a plan

Follow Us

DOWNLOAD THE APP