Rs 29/Sh Dividend: FMCG HUL Declares Decline In Net Profit, Shares Fall 0.90%; Buy/Sell?

Large cap FMCG player, Hindustan Unilever Ltd (HUL) today announced a fall of 2.4% in its consolidated net profit for Q2FY25 to Rs 2591 crore as against Rs 2668 crore announced in the corresponding quarter of last year. It announced a jump of 2.1% in its consolidated revenue for the quarter under review at Rs 16,145 crore. HUL recommended a total interim dividend of Rs 29 per equity share of the face value of Re 1/- each. The large cap FMCG giant's market cap stood at Rs 6,24,521.36 crore.

Last trading price of Hindustan Unilever shares on BSE is Rs 2658.00 apiece with intraday decline of 0.90%. Hindustan Unilever shares slipped 12% in last 30 days and gained 6.98% in last 1-year. Check details below:

HUL Q2: Meanwhile, the FMCG giant declared the EBITDA for Q2FY25 at Rs 3,647 crores while the EBITDA margin stood at 23.8%. Rohit Jawa, CEO and Managing Director said, "In September quarter, FMCG demand witnessed moderating growth in urban markets while rural continued to recover gradually. In this context, we delivered a competitive and profitable performance. We continued to execute on our strategic priorities of transforming our portfolio whilst generating healthy EBITDA margin and cash flows, providing attractive returns to our shareholders. We remain watchful of gradual recovery in consumer demand while creating a sustained competitive advantage through our business fundamentals: investing behind our aspirational brands, scaling market-making innovations and maintaining operational rigor."

HUL Declares Attractive Dividend: As per the regulatory filing of HUL dated October 23, 2024, "declared a total interim dividend of Rs. 29 per equity share of face value of Re. 1/- each (which includes a regular interim dividend of Rs. 19 and special dividend of Rs. 10 per equity share) for the financial year ending 31st March, 2025. As intimated vide our letter dated 10th October, 2024, the record date for the purpose of determining the entitlement of the shareholders for the interim dividend has been fixed as Wednesday, 6th November, 2024, and dividend will be paid to the shareholders on 21st November, 2024."

Hindustan Unilever Fixes Record Date For Interim Dividend: The exchange filing stated, "Please note that the Record Date for the purpose of determining the entitlement of the shareholders for the Interim Dividend, if any, has been fixed as Wednesday, 6th November, 2024."

HUL Shares Performance: The 52-week high price of HUL shares on BSE is Rs 3034.50 per share (as on 23/09/2024) and 52-week low price is Rs 2170.25 per share (as on 16/04/2024), respectively. Hindustan Unilever shares jumped 17% in last 6-months and gained over 8% in last 3-years.

HUL Dividend History: Hindustan Unilever recommended 51 dividends since March 27, 2001. At the current share price of Rs 2658.60, HUL offers a dividend yield of 1.58%.

Shareholding Pattern: FII/FPI decreased holdings from 12.67% to 11.87% in June 2024 quarter. Number of FII/FPI investors increased from 1925 to 1951 in June 2024 quarter. Mutual Funds have increased holdings from 5.01% to 5.58% in June 2024 quarter. Number of MF schemes increased from 333 to 362 in June 2024 quarter. Institutional Investors have increased holdings from 25.95% to 26.04% in June 2024 quarter. Lici Market Plus Balanced Fund has 5.16% stake in HUL with 121,161,787 shares of the company.

Buy Call: LKP Securities has recommended buy call to HUL shares with target price of Rs 3050 per share and maintain the stop loss at Rs 2665 per share. Meanwhile, Prabhudas Lilladher recommended buy call to HUL shares with target price of Rs 3040 and keep the stop loss at Rs 2680 per share. The analyst said HUL registered a correction from the ₹3,035 level and indicated signs of bottoming out near Rs 2,730 zone with a pullback indicated to improve the bias, and further rally can take place.

Hindustan Unilever About: Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company with a 90-year heritage in the country. It has a wide and resilient portfolio of 50+ brands, spanning 16 FMCG categories, which are a part of everyday life of millions of consumers across India. It manufactures more than 65 billion units annually, that are made available to our consumers through nine million retail outlets and many digital commerce platforms, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of LKP Securities AND Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.