Edelweiss’ research report on Hindustan Unilever
Hindustan Unilever (HUL) revealed in-line Q4FY17 income development of 6.4% YoY, while EBITDA (12.2% YoY) and PAT (7.6% YoY) development outperformed gauges. Volume development of 4% YoY was a sharp recuperation from the 4% YoY plunge in Q3FY17 with residential development of 8% YoY supported by sound estimating development (recovered after many quarters).
HUL is key beneficiary of share gains helped by GST. Expanded dispatches in characteristic space will contain share misfortune and move development. Be that as it may, achievement of new dispatches is vital. Effect of cannibalisation on center portfolio is a monitorable. At CMP, the stock is exchanging at 36.5x FY19E. We look after ‘HOLD/SP’ with target cost of INR 1,106.