HUL Q4 Results Review - Volume Growth Continues To Remain Muted: Dolat Capital

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Dolat Capital Report

Hindustan Unilever Ltd.’s core results came in-line with our estimates. Despite 2% volume growth, revenues declined 0.2% due to price pass-on. Going ahead, volume growth would lead to growth due to less opportunity for price hikes.

Gross margin expanded 320 basis points YoY due to softening commodity prices. However, 60/200/70 bps increase in employee cost/advertising and promotion/other expense resulted in Ebitda margin contraction of 20 bps (as estimated).

Considering challenging demand conditions, we have revised our FY25/26E earnings per share estimates downward by 3.8/3.4% at Rs 46.9/52.6.

Valuing the stock at 48 times FY26E EPS, arrive at target price of Rs 2,522. Considering the recent fall in the stock price we upgrade to Accumulate.

Click on the attachment to read the full report:

Dolat Capital Hindustan Unilever Q4FY24 Result Update.pdf

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Also Read: HUL Q4 Results: Profit Down 6% At Rs 2,406 Crore, Higher Costs Hurt Margin

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