Hindustan Unilever All levers played out, Downgrade to HOLD :Emkay,

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Hindustan Unilever

All levers played out, Downgrade to HOLD

HOLD

CMP: Rs375                                        Target Price: Rs347

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n     Results beat our expectations – Sales growth of 17.8% to Rs 56bn driven by 9.8% volume growth and APAT growth of 21.7% to Rs 6.9bn

n     Soaps and detergents outshine – revenue growth of 21.8% with PBIT margin expansion of 60bps yoy and 320bps qoq –this catalyst played out earlier than expected

n     We believe all the upgrade catalysts have played out and do not see further catalysts in the near term. At CMP, we feel there is limited upside left, if any

n     While we raise our FY12E/13E EPS by 5.9% to Rs 11.8 and by 5.6% to Rs 13.3, respectively, we downgrade the stock to HOLD with a revised TP of Rs 347/share