Hindustan Unilever - Q3FY12 Result Update - Emkay

Reco: HOLD
CMP: Rs 382
Target Price: Rs 359

Optically Strong, Retain HOLD

- Optically, Q3FY12 performance remains strong on all counts- (1) Revenue Rs59.4 bn +15.8% yoy (2) 9.1% yoy volume growth (3) APAT Rs7.7 bn +33.3% yoy

- Soaps and Detergents continue to outshine; revenues Rs26.5 bn +20.7% yoy, Ebit Rs3.6 bn +110.2% and Ebit margin +580 bps yoy led by volume growth and pricing increases

- Personal Products takes a short break, moderate revenue growth at 14% yoy to Rs18.9 bn and Ebit growth of 2.4% yoy to Rs4.9 bn

- Reckon quality of performance is weak; All levers playing out and earnings upgrades peaking, Retain negative bias with HOLD rating and target price of Rs 359/share.

Source : Equity Bulls

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