ETMarkets.com|
Dec 05, 2018, 02.31 PM IST
PEER COMPANIES
The current market price of HUL is Rs 1,830.05.
Time period given by the brokerage is one year when HUL price can reach the defined target.
Investment rationale by the brokerage:
Post our downgrade two quarters back, HUL stock has remained sideways given concerns of base catching up and sustainability in gross margin improvement. We believe concerns relating to RM inflation are behind us given sharp correction in crude oil price and in our view, GSK consumer acquisition is step in right direction and upgrade our rating to BUY with a target price of Rs 2,160 (50x FY21 EPS) vs. Rs 1,760 (50x Dec-20 EPS). We increase HUL Revenue/Ebitda and Net income FY21 estimates by 12/ 27/29 per cent respectively as it has all levers in place to make acquisition work to its advantage. Kindly note that we have not considered amortization on goodwill in our financial nos and even if has to consider it, it wont affect adjusted net income (as in case Emamis acquisition of Kesh King) and net results remain the same.
Read this article in :HindiRead more on
Also Read
Buy Orient Electric, target Rs 200: Phillip Capital (India)
Buy Finolex Cables, target Rs 635: Phillip Capital (India)
Buy Maruti Suzuki India, target Rs 8,000: Phillip Capital
Buy Ceat, target Rs 1,800: Phillip Capital (India)
Commenting feature is disabled in your country/region.
Disclaimer: This recommendation is analyst's own and does not represent those of economictimes.com & ETMarkets.com. Please consult your financial advisor before taking any position in the stock/s mentioned.
From Around The Web
More from The Economic Times
Original Article
[contf]
[contfnew]
ET Markets
[contfnewc]
[contfnewc]
