BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
Motilal Oswal maintains buy on Hindustan Unilever
We expect Hindustan Unilever to report 18% PAT CAGR over FY17-19, as against 6.1% in the last three years, 10.6% in the last five years and 10.7% in the last 10 years. While valuations are not cheap at 45.2x FY19E EPS (given potentially strong earnings growth), we believe premium valuations are justified, particularly as return ratios and dividend yield remain best-of-breed. We maintain our Buy rating on the stock with a target price of INR1,400 (46x Sep' 2019E EPS; 10% premium to three-year average valuations).