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HUL will continue to outperform FMCG sector, says Reliance Securities

Updated : May 06, 2019 11:12 AM IST

Naveen Kulkarni, head of research at Reliance Securities shared his views and readings on Hindustan Unilever’s (HUL) Q4 numbers. The company on Friday reported a 13.8 percent year-on-year (YoY) jump in net profit at Rs 1,538 crore for the fourth quarter ended March 2019.

Kulkarni said that the numbers are in line with the expectation.

“Categories like fabric wash, skincare and oral care has started doing well. So the company seems to be doing well but the commentary has been quite cautious for the short-term, which is essential for the next 3-6 months and that’s where the challenges are at this point in time,” Kulkarni said.

“We have cut our revenue estimates by around 2 percent for the year and that has resulted in 5-6 percent cut in earnings. However, we still believe HUL will continue to outperform the sector,” he further added.

On the performance of HUL shares, Kulkarni said, “We do not believe the stock is likely to correct significantly from the current levels. So that is where we stand. Therefore, at a lower level, we will be buyer of the stock.”
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