HUL Q1 Results Review - Recovery Mostly Priced In: Prabhudas Lilladher

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..Prabhudas Lilladher Report.We have reduced our rating to Hold given that the stock has given 21% return in past three months since our upgrade. While rural demand is showing gradual signs of a recovery, Hindustan Unilever Ltd.’s profit after tax compound annual growth rate is unlikely to be in double digits over FY24-26 given that-raw material led gains have been derived in FY24 itself,demand in categories like mass skin care and HFD remains under pressure andrising competition in high growth liquid detergents where HUL has also launched Rin to counter competition from Godrej Consumer Products Ltd. and Wipro Ltd. .While HUL expects margins to improve over medium term led by - operating leverage, product mix improvement, supply chain synergies and remodeling in Horlicks portfolio, our estimates are already factoring in 80 basis points improvement over FY24-26. We estimate 8.2% PAT CAGR over FY24-26 and assign DCF based target price of Rs 2698 (Rs 2543 earlier). The stock trades at 52.3 times June26 EPS which offers limited upside post recent run up. Downgrade to Hold (Accumulate earlier).Click on the attachment to read the full report:.HUL Q1 Results Review - Inline; Price Run-Up Leads To Rating Downgrade: Yes Securities.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 - Recovery Mostly Priced In: Prabhudas Lilladher

The stock trades at 52.3 times June-26 earnings per share which offers limited upside post recent run up, according to the brokerage.

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HUL Q1 Results Review - Recovery Mostly Priced In: Prabhudas Lilladher

The stock trades at 52.3 times June-26 earnings per share which offers limited upside post recent run up, according to the brokerage.

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