HUL Q4 Results Review - Accumulate For Moderate Returns: 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 cut Hindustan Unilever Ltd.'s FY25/26 earnings per share by 1.6/1.3% factoring in-slower than expected recovery in volumes in rural India,price cuts in personal wash and skin care to improve consumer price value equation,sustained competitive intensity across mass segment in HPC segment resulting in market share loss andhigher investments in advertising and promotion and innovations to sustain LT growth. While home care, food and refreshment and and beauty segment are doing well across channels, price correction in soaps and skin should provide growth push from H2 FY25, in our view. We believe normal monsoon can provide flip to rural demand although margin expansion from current levels will be very moderate (50 bps over FY24-26). Long-term growth levers led by higher growth in E-com and categories of future (liquids, Green Tea, premium skincare etc.) and premium segments remains intact, we estimate 8% profit after tax compound annual growth rate over FY24-26 and assign discounted cash flow based target price of Rs 2543 (Rs 2600 earlier). Risk reward looks favorable post little returns in last four years; however, significant re-rating looks unlikely given valuations at 44.6 times FY26 and market momentum in favor of cyclicals. We upgrade the stock to Accumulate (Hold earlier) for moderate returns over next 12-15 months..Click on the attachment to read the full report:.HUL Q4 Results Review - Growth Remains Subdued: Systematix.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 Q4 Results Review - Accumulate For Moderate Returns: Prabhudas Lilladher

Monsoons and subsequent uptick in rural income likely to revive demand

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