Buy Hindustan Unilever, target price Rs 2,870: JM Financial
buy call on Hindustan Unilever Ltd. with a target price of Rs 2870. The current market price of Hindustan Unilever is Rs 2,479. Hindustan Unilever, incorporated in 1933, is a Large Cap company, with a market cap of Rs 582498.92 crore, operating in the FMCG sector.
Hindustan Unilever's key products/revenue segments include Personal Care and Other Operating Revenue for the year ending 31-Mar-2024.
Financials For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 16145.00 crore, up 1.13 % from last quarter Total Income of Rs 15964.00 crore and up 2.14 % from last year same quarter Total Income of Rs 15806.00 crore. The company has reported net profit after tax of Rs 2601.00 Crore in latest quarter.
Investment Rationale
India FMCG opportunity is large & volume growth is expected to accelerate over medium to LT? visible from Unilever PLC mentioning about ?doubling down on India? and HUL too backed it up by clearly defining the area of opportunities across its segments. The underlying theme of 'Transform to Outperform' remains unchanged. However, in Rohit's (MD & CEO) maiden investor day presentation, the emphasis on accelerating portfolio transformation through premiumisation (Future Core) & market development (Market Makers) was higher. This is visible from 'Future Core' comprising of 10 brands (of Rs 10bn+ size) which are at sweet spot of premiumisation and 'Core' comprising more of mass end brands (such as Lifebouy, GAL, Rin, Clinic+). Moreover, growth algorithm (for double
