MOSL: HINDUSTAN UNILEVER (Buy)-Continues to outperform in a slowing demand environment
Hindustan Unilever: Continues to outperform in a slowing demand environment
(HUVR IN, Mkt Cap USD52.9b, CMP INR1693, TP INR1950, 15% Upside, Buy)
- HUVR’s performance was in-line with our estimates with net sales growth of 9.3% YoY to INR99.5b, EBITDA growth of 13.3% YoY to INR23.2b and PAT (bei) up by 12.8% YoY to INR15.9b. Domestic consumer business sales were up 9% YoY, led by underlying volume growth of 7% YoY. Home care saw strong volume led growth (up 13% YoY) with 120bp YoY improvement in margins.
- FY19 performance: Volume, Sales, EBITDA and adj. PAT grew by 10%, 11%, 18.7% and 18.4%, respectively. EBITDA margin expanded 150bp to 22.6%.
- Key concall highlights: 1) Macroeconomic indicators are pointing toward some pressure on near-term market growth. Nevertheless, HUVR appears confident of performing well even in a relatively difficult environment. 2) Rural growth in 4QFY19 was closer to urban growth (v/s 1.3x in the earlier quarters).
Hindustan Unilever is predominantly engaged in manufacturing and distributing consumer products mainly in India. Co. operates five main business segments: Soaps and Detergents include soaps, detergent bars, detergent powders, detergent liquids, scourers, etc.; Personal Products include products in the categories of Oral Care, Skin Care (excluding soaps), Hair Care, Deodorants,Talcum Powder, Colour Cosmetics, Ayush services; Beverages include tea and coffee; Package Foods include Branded Staples (Atta, Salt, Bread, etc.), Culinary Products (tomato based products, fruit based products, soups, etc.) and Frozen desserts; Others include Exports, Chemicals, Water business, Infant Care Products.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.