Hindustan Unilever Limited
Hindustan Unilever (HUL) share price added a percent in the early trade on April 30, a day after the FMCG major reported a 44.8 percent jump in consolidated profit to Rs 2,190 crore from Rs 1,512 crore in the year-ago period.
Consolidated revenue from operations climbed 35 percent year-on-year to Rs 12,433 crore in Q4 FY21.
Also Read: HUL Q4 profit spikes 45% to Rs 2,190 crore, revenue jumps 35%; earnings beat estimates
Here is what brokerages have to say about the stock and company after Q4 earnings:
Macquarie | Rating: Outperform | Target: Rs 2,700
The profit was broadly in line, while gross margin miss was offset by lower other expenses. The willingness to hike price in soaps enhance comfort on near-term growth.
Citi | Rating: Buy | Target: Rs 2,755
It was a strong end to FY21 and the company is well-placed in uncertain times. The overall EPS estimate has been raised up to 1 percent.
Jefferies | Rating: Buy | Target: Rs 2,750
There was a strong beat on EBITDA and net earnings despite near in-line revenues. The company believes that the second coronavirus wave may not disrupt supply chain significantly, while margin should see an improvement in H2FY22.
Prabhudas Lilladher | Rating: Buy | Target: Rs 2,562
We have increased our sales estimates by 1.8 percent for FY22 and FY23 on the back of strong momentum in the fourth quarter but cut our EPS estimates by 3.3 percent/0.8 percent for FY22/FY23 on the back of input cost inflation and higher tax rate.
We expect HUVR to emerge stronger post-pandemic on the back of increased operating leverage in the nutrition business and improving demand scenario.
Dolat Capital | Rating: Reduce | Target: Rs 2,512
We have revised our FY22/23E revenue estimates to factor in Q4 performance and the improvement in the discretionary portfolio. However, we have revised downward our margin estimates to factor in the increase in RM prices and anticipated increase in A&P spends. In line with the revision, we have tweaked our EPS estimates as well.
Sharekhan | Rating: Buy | Target: Rs 2,790
We have fine-tuned our earnings estimates for FY2022/23 to factor in the little lower other income and higher depreciation charged than earlier estimated. Barring near-term uncertainties due to rising COVID-19 cases, HUL management is confident of achieving volume-led earning growth on the back of a strong product portfolio, agile supply chain, strong distribution model and relatively higher presence in rural India.
Synergistic benefits from GSK merger will add on to the earnings in the coming years. This, along with a strong cash-generation ability and dividend payout, makes it a better pick in the large-cap FMCG space.
At 0932 hours, Hindustan Unilever was quoting at Rs 2,399.85, down Rs 9.20, or 0.38 percent on the BSE.
The share touched a 52-week high of Rs 2,504.30 on April 13, 2021 and a 52-week low of Rs 1,902.30 May 7, 2020. It is trading 4.17 percent below its 52-week high and 26.16 percent above its 52-week low.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
