Fundamental Analysis

HINDUSTAN UNILEVER LIMITED
{Ticker : 500696 { BUY: Rs 2059.35 { Target: Rs 2280

Hindustan Unilever Limited is engaged in fast-moving consumer goods engaged in the manufacture of branded and packaged consumer products. On a consolidated quarterly front, the net sales grew by 3.87 per cent for the quarter-ended December 2019 to Rs 9,953 crore from Rs 9,582 crore in the same period for the previous fiscal year. The company reported an operating profit of Rs 2,259 crore in Q3FY20, up by 15.49 per cent from Rs 1,956 crore reported in Q3FY19. Similarly, the net profit increased by 12.95 per cent from Rs 1,444 crore in Q3FY19 to Rs 1,631 crore in Q3FY20. Although revenue growth has remained subdued for the current quarter, Union Budget for FY20-21 should help in reviving demand, especially in the rural markets. Thus, we recommend a BUY.