Here’s how brokerages rate Hindustan Unilever post Q3 results
OUTPERFORM call, target at Rs 2,059 per share.
Like company’s focus on driving penetration leading to volume growth
Q3FY19 adjusted PAT was broadly in-line with our estimates.
Launching of Rs 10 SKU across premium brands can boost volume.
Consensus continues to upgrade, we are 4-7 percent ahead for FY18-21.
Consensus upgraded earnings for FY19/20 by 4 percent; see further upgrades.
Company a top pick in the sector and high conviction marquee idea
Maintains OUTPERFORM, target cut to Rs 2,059 from Rs 2,086 per share.
Maintains NEUTRAL, target at Rs 1,900 per share
Steady quarter but growth could slow going ahead.
Volume growth healthy at 10 percent and revenue growth at 13 percent.
It’s the last quarter of YoY tailwinds from November 2017 GST rate cuts.
See a substantial slowdown in revenue growth to 7-8 percent and volume to 5-6 percent in Q4.
Steep valuations and high earnings expectations leave no room for upside.
Strong volume growth trajectory continues.
Underlying operating margin in-line with our estimate.
Key negative was flat margin in the home care business.
Maintains OUTPERFORM call, target at Rs 2,010 per share.
For its size, to grow volumes at 10% is commendable.
Commentary positive as demand conditions seem stable.
Execution remains company’s key advantage.
Strong execution should help co grow earnings at 15%+ going forward.
Upside from GSK deal seen in FY21.
HOLD call, target raised to Rs 1,770 from Rs 1,650 per share.
Q3 results came largely in-line with our estimates.
Lower pricing led to 12.4 percent YoY net sales growth.
Sales and margin estimates leave no room for upgrades.
Valuation makes risk-reward unattractive.
Margin expansion should still continue given benign RM.