HUL reported a standalone net profit of Rs 2,472 crore for the June quarter which was up 8% year-on-year versus Rs 2,289 crore posted by the company in the year-ago period. The company’s sales increased 7% YoY to Rs 14,931 crore. An ET NOW poll of analysts had anticipated the profit figure at Rs 2,615 crore.
Following the Q1 earnings, several top brokerages came out with their views on the stock. Here is what they recommended:
Jefferies: Hold | Target: Rs 2,770
Jefferies downgraded HUL to ‘Hold’ while placing the price target at Rs 2,770. The company reported a weak print with volume growth of 3% YoY, a five-quarter low, it said. The outlook is cautious as recovery will take time due to macro headwinds. Jefferies cut the EPS by 1-3% after a 10% rally over the last 3 months.
Motilal Oswal: Buy | Target: Rs 3,100
Motilal Oswal recommended a ‘Buy’ on the counter for a price target of Rs 3,100. With improving commentary on rural recovery and commodity cost reductions, it remains optimistic that Hindustan Unilever will return to the mid-to-high teens earnings growth trajectory that it exhibited for four years before the pandemic.
Nuvama: Buy | Target: Rs 3,280
HUL’s Q1FY24 revenue was in line with Nuvama’s estimates but slightly below Street’s. “We are cutting FY24E/25E EPS by 3%/3%,” it said while recommending a ‘Buy’ with target price of Rs 3,280 which is lower from an earlier target of Rs 3,377.
JM Financial: Buy | Target: 2,980
HUL’s June quarter earnings were lower than what JM estimated. While it sees potential for a double-digit return from the stock over the coming year, it believes valuation-multiple could get capped given a tougher operating landscape. The brokerage recommended a ‘Buy’ for a target of Rs 2,980.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
