Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
27 November, 2021 05:02 IST
Accumulate Hindustan Unilever; revises target price to Rs 2,606
Source: IRIS | 28 Jan, 2021, 12.47PM
Rating: NAN / 5 stars.
Comments  |  Post Comment

 

Hindustan Unilever (HUVR) 3QFY21 result was below our estimates due to higher than expected raw material cost pressure, said IDBI Capital.Overall business, on comparable basis, grew 7%YoY (+4%YoY volume growth) driven by continued double-digit growth momentum in health, hygiene and nutrition portfolio. Revenue from discretionary portfolio moderately declined by 1%YoY while revenue from out-of-home portfolio recovered strongly compared to previous two quarters. Gross margin declined 24bp YoY to 54% due to inflationary raw material cost.

EBITDA margin contracted 87bp to 24.1% due to higher other expense (+28%YoY, +72bp YoY as % of revenue). Adjusted PAT grew 14%YoY to Rs 20 billion. During the quarter HUVR reported Rs 420 million restructuring expense related to nutrition business.

Commenting on the result review, the broking firm said, "Revenue from rural India grew at double digit while from urban remained in positive territory. Inflationary raw material led to decline in gross margin while higher other expenses contributed towards decline in EBITDA margins. We have cut our EPS estimate for FY21E by 8% factoring-in the impact of higher than expected raw material cost pressure. We maintain our Accumulate rating on the stock with a revised TP of Rs 2,606."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.



 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
Indiabulls Real Estate raises Rs 750 mn through NCDs - 25-Nov-2021 11:13
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer