Hindustan Unilever Records Ebidta Growth, Upgrade to ACCUMULATE :Emkay

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Hindustan Unilever

Records Ebidta Growth, Upgrade to ACCUMULATE

ACCUMULATE

CMP: Rs 284                                       Target Price: Rs 312

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n     Hindustan Unilever (HUL) Q4FY11 performance meets EMKAY expectation of Rs4.9 bn, but higher then Consensus expectation of Rs4.5 bn

n     Quality of performance was good, considering 13% yoy volume growth being higher then expectation and Ebidta margin reduction (13%) being lower then expectation

n     All near term concerns remain largely addressed; also improvement in Soaps N Detergents margins remains un-played

n     Upgrade FY12E earnings by 3.5% to Rs10.9/Share and introduce FY12E earnings of Rs12.0/Share- amidst attractive valuations upgrade from ‘HOLD’ to ‘ACCUMULATE’