HUL Q2 Results Review - Battling On Multiple Fronts: Dolat Capital

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..Dolat Capital Report.Hindustan Unilever Ltd.’s core results came in-line with our estimates. Despite 3% volume growth, revenue growth was moderate due to price pass-on during the year. However, as HUL begins implementing price hikes, we expect an improvement in value growth moving forward. Gross margin contracted by 170 bps YoY due to volatile commodity prices. A 170/30/50 bps increase in raw material cost/employee cost/other expense led to Ebitda margin contraction of 70 bps. Going ahead, Ebitdam is expected to remain at current levels. We have lowered our FY25/26E EPS estimates by 0.8/2.2% YoY at Rs 46.6/51.4 to factor in Q2 performance and divestment of ice-cream business, while introducing FY27E EPS at Rs 56.7. Despite concerns over near-term inflationary pressures, we remain confident about long-term premiumization strategy. Maintain ‘Accumulate’ rating with target price of Rs 2,978..Click on the attachment to read the full report:.HUL Q2 Results Review - Miss On Volume; Core Portfolio Performs Well; Reiterate 'Buy': 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 Q2 Results Review - Battling On Multiple Fronts: Dolat Capital

Despite concerns over near-term inflationary pressures, the brokerage remains confident about long-term premiumisation strategy.

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HUL Q2 Results Review - Battling On Multiple Fronts: Dolat Capital

Despite concerns over near-term inflationary pressures, the brokerage remains confident about long-term premiumisation strategy.

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