Growth prospects for FMCG major Hindustan Unilever remain optimistic, brokerage firm Geojit has said in its latest report.
The broking firm has set a target of Rs 2440 on the stock.
"As the virus related uncertainties fade& people start stepping out, demand for the non-staple products is also expected to improve which in turn provides comfort in terms of revenue & margin growth for the firm. We are optimistic in terms of growth prospects of the firm and hence upgrade our rating on the stock to BUY with a revised target price of Rs. 2,440 based on 57x FY22E adj. EPS," Geojit has said.
According to the broking firm the food business has driven the topline. It has given the following highlights following a concall:
- Factories & Depots are 100% operational.
- Supplier service operations are also back to normal despite interim difficulties due to localized lockdowns.
- 2x growth from E-Commerce (YoY Basis) demonstrates the brands' strength and growth momentum.
- Domestic consumer growth stood at 3% (excluding the impact of GSK's merger & Vwash's acquisition).
- The board has approved an interim dividend of Rs.14 per share
- The stock of Hindustan Unilever was last seen trading at Rs 2145 on the NSE.
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