Hindustan Unilever - Retain That 'Upgrades' Are Far & Thin, Retain HOLD - Emkay

- No surprises in store in Q4FY12 performance; Revenue growth +16.1% yoy to Rs57.6 bn, Ebidta growth +29.7% yoy to Rs8.3 bn and APAT growth +33.0% yoy to Rs6.5 bn

- Underlying volume growth at 10.0% yoy, improves qoq basis; Domestic consumer and HPC business grew 20% yoy

- Segment margins revert to mean after the deviation; Margins in Soaps & Detergents soften to 11.3% (from 13.5%) and Personal Products increase to 26.3% (from 24%)

- Retain that all positives factored in earnings and valuations; Absence of strong upgrade catalyst. Retain HOLD rating with target price of Rs 398/Share (25X FY14E earnings).

Source : Equity Bulls

Keywords