Hindustan Unilever Ltd (NSE: HINDUNILVR): Hindustan Unilever Ltd share fell early in trade on Wednesday after the results of the first quarter of FY 2025. After the quarterly results of FMCG sector giant HUL, investors are eager to know what strategy they should adopt in this stock.
Share of Hindustan Unilever (HUL) fell 3.3% to Rs 2,674 in intraday trade on Wednesday. The company reported on Tuesday more profit for the first quarter, aided by price reductions as well as improvements in its service for home care.
FMCG industry major Hindustan Unilever Ltd on Tuesday reported a three percent year-on-year (YoY) increase in net profits to Rs 2,538 crore in the quarter that ended 30 June 2024. This is according to Street estimates of 2,541 crore rupees.
The company’s profit from operations in the last quarter was 15,166 crore rupees. This was up by 2% compared to the 14,931 crore rupees for June of 2023.
Meanwhile, earnings before interest, tax, depreciation, and amortization (EBITDA) margin as a percentage of turnover increased by 170 bps to 23.8%.
Brokerage House Advised To Buy
A stock brokerage firm has reiterated its ‘buy’ rating on Hindustan Unilever Ltd, advising to buy with a target price of Rs 3,250.
A Stock Brokerage Firm
A stock brokerage firm said in its report, “Hindustan Unilever Ltd 1QFY25 performance was in line with our estimates. Net selling grew 2%, while volume growth was just 4%. Demand trends saw steady improvement. The focus has been on volume-based growth through continued new launches and aggressive spending on marketing.”
The stock brokerage firm said, “We are modeling an acceleration in volume growth in FY25 due to our initiatives and improving demand trends. Revenue growth is expected to rise in 2HFY25 owing to the increase in volume and costs. With earnings improving, we expect a re-rating of valuations.”
A Retail Brokerage Firm
A retail brokerage firm has maintained a Hold rating for Hindustan Unilever Ltd. It also has increased the target price to 2,797 rupees, up from 2,439 rupees.
The brokerage firm that deals in retail reported that its Q1 results were slightly ahead of expectations across all indicators and an improvement in the direction of a gradual increase is anticipated.
UVG was impacted by PC and food, while the premium category is expected to grow further.
Another Stock Brokerage Company
The stock brokerage company has dropped Hindustan Unilever Ltd’s rating to ‘Hold’ from ‘Accumulate’ and has set the target price of 2,698 rupees.
The stock brokerage company said in the report, “We have downgraded our rating to HOLD as the stock has delivered 21% returns in the last 3 months since our upgrade.
Rural demand is beginning to show signs of improvement however, Hindustan Unilever Ltd’s PAT CAGR is unlikely to reach double figures in FY24 to 26 since the RM-based profit is only realized in FY24.
Additionally, demand is at a minimum in categories like general skin care and HFD, and the increasing competition for liquid detergents with high growth, where Hindustan Unilever Ltd has also introduced Rin to fight off competition from GCPL along with Wipro.
Hindustan Unilever Stock Performance
| Current Price | ₹ 2,717 |
| 52-wk High | ₹ 2,812 |
| 52-wk Low | ₹ 2,170 |
| 5 Days Return | 1.37% |
| 1 Month Return | 11.41% |
Key Fundamentals Parameters
| Market Cap | ₹ 6,38,361 Cr. |
| Stock P/E | 61.8 |
| Book Value | ₹ 218 |
| Dividend | 1.55 % |
| ROCE | 27.2 % |
| ROE | 20.2 % |
| Face Value | ₹ 1.00 |
| P/B Value | 12.5 |
| OPM | 23.7 % |
| EPS | ₹ 44.0 |
| Debt | ₹ 1,484 Cr. |
| Debt to Equity | 0.03 |
Hindustan Unilever Shareholding Pattern
| Promoters Holding | |
| June 2023 | 61.90% |
| Sept 2023 | 61.90% |
| Dec 2023 | 61.90% |
| Mar 2024 | 61.90% |
| Jun 2024 | 61.90% |
| FII Holding | |
| Jun 2023 | 14.48% |
| Sep 2023 | 13.90% |
| Dec 2023 | 13.65% |
| Mar 2024 | 12.67% |
| Jun 2024 | 11.87% |
| DII Holding | |
| Jun 2023 | 11.47% |
| Sep 2023 | 11.90% |
| Dec 2023 | 12.31% |
| Mar 2024 | 13.21% |
| Jun 2024 | 14.09% |
| Govt. Holding | |
| Jun 2023 | 0.04% |
| Sep 2023 | 0.04% |
| Dec 2023 | 0.04% |
| Mar 2024 | 0.04 |
| Jun 2024 | 0.05% |
| Public Holding | |
| Jun 2023 | 12.09% |
| Sep 2023 | 12.26% |
| Dec 2023 | 12.11% |
| Mar 2024 | 12.19% |
| Jun 2024 | 12.11% |
Hindustan Unilever Share: Last 5 Years’ Financial Condition
Last 5 Years’ Sales:
| 2020 | ₹ 39,783 Cr |
| 2021 | ₹ 47,028 Cr |
| 2022 | ₹ 52,446 Cr |
| 2023 | ₹ 60,580 Cr |
| 2024 | ₹ 62,107 Cr |
Last 5 Years’ Net Profit:
| 2020 | ₹ 6,756 Cr |
| 2021 | ₹ 7,999 Cr |
| 2022 | ₹ 8,892 Cr |
| 2023 | ₹ 10,143 Cr |
| 2024 | ₹ 10,338 Cr |
Conclusion
This article provides a detail guide about Hindustan Unilever Ltd share.
The information and forecasts provided result from the analysis of our research team, the company’s basics and history, experience and various technical analyses.
Also, we’ve talked in depth about the shares’ prospects and growth possibilities.
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