Hindustan Unilever - Q3FY12 Result Update - Microsec Research

Hindustan Unilever Ltd. (HUL) is a part of the everyday life of millions of consumers across India with its leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall's and Pure it. These Brands are the life blood of its business which it had build over the years in the minds & hearts of Indian consumers and now the brand loyalty is unlikely to fade in the near term.

We believe that HUL's new strategies, leadership position, strong rural penetration, large distribution channel, powerful brands, diversified product line, constant product innovation and its sustainable business model, will help it to capture the changing dynamics of Indian consumers in the areas of beauty, hygiene, skin care, personal care, oral care, food habits etc.

At the CMP of INR419, the stock is currently trading at a P/E of 39.7x. It discounts its FY12E EPS of Rs.11.64 by 35.9x and its FY13E EPS of Rs 13.9 by 30x.

We value the stock at a target P/E multiple of 36x based on its FY13E EPS to arrive at the Target price of INR500.

Source : Equity Bulls

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