Eye on Q2 numbers, HUL stock jumps over 2%

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NEW DELHI: Shares of Hindustan Unilever gained over 2 per cent on Friday ahead of its second quarter results.

The stock rose 2.45 per cent to hit a high of Rs 1,566 on the BSE early today.

Analysts said any improvement in rural business, commentary on competition, especially in natural products and oral care, pricing actions as well as new launch strategy are some of the key elements to watch in the quarterly show of the FMCG firm.

Kotak Securities is expecting the company to report 15 per cent revenue growth in domestic FMCG business, aided by 10 per cent underlying volume growth and 5 per cent price-led growth. On a segmental basis, it is baking in 17 per cent and 14 per cent YoY revenue growth for home care and personal care segments.

Brokerage firm HDFC Securities expects revenue growth of 13 per cent in Q2 FY19 for HUL, with 17.50 per cent year-on-year rise in adjusted profit after tax for the quarter under review. The brokerage house sees adjusted EPS at Rs 5.70 in Q2 FY19 over Rs 6.7 in Q2 FY18. Ebitda may grow 18.3 per cent on a year-on-year basis.

According to Nirmal Bang Securities, the company is expected to deliver volume-led double-digit revenue growth in Q2 FY19. It projected rise in volume in the range of 8-9 per cent and value at around 4 per cent during the quarter.

Volume-led growth assumption is based on broad-based demand for its products across categories, improved performance of natural portfolio and new products like the launch of Brylcream range exclusively on Amazon, it said.

Source: Economic Times