EUR 120.00 For Business Accounts Only

MOSL: Morning India (12/February/20): 1. Hindustan Unilever (Significant ‘levers’ for earnings growth); 2. Coal India; 3. M&M; 4. Hindalco; 5. Siemens; 6. Petronet LNG; 7. Phoenix Mills; 8. BHEL

MOrning India (12/February/20): 1. Hindustan Unilever (Significant ‘levers’ for earnings growth); 2. Coal India; 3. M&M; 4. Hindalco; 5. Siemens; 6. Petronet LNG; 7. Phoenix Mills; 8. BHEL

 

Today’s top research idea

Hindustan Unilever: Significant 'levers' for earnings growth

• HUVR has been a stellar performer over the past decade, both in terms of earnings and stock price. Also, it has significantly outperformed some of its peers over the same period.
• Factors that led to strong earnings performance viz. nimbleness, stringent cost savings, premiumization and best-of- breed analytics are likely to continue going ahead as well. From a near-term perspective, favorable base, expected recovery in the demand from 2QFY21, synergies from the GSKCH merger, price increase in soaps and lower crude costs are likely to boost earnings.
• We expect HUVR's high-teens' earnings growth (23% CAGR including the GSKCH merger) to continue. Given the best RoEs among peers, the wealth generation record is likely to continue. We raise our target multiple to 50x FY22E EPS on the merged numbers resulting in our TP changing to INR2,490.

Piping hot news

AAP broom sweeps out BJP in Delhi

Arvind Kejriwal’s development model trounced the BJP’s strident campaign mounted around the anti-Citizenship (Amendment) Act (CAA) as the Aam Aadmi Party (AAP) won a landslide victory in the Delhi Assembly elections on Tuesday.