Rs 18/Share Dividend: Motilal Oswal Suggests Large Cap Stock To Buy After Q2, TP Rs 3015

Motilal Oswal is upbeat on large cap FMCG sector stock, Hindustan Unilever Ltd (HUL) and recommended buy call with target price of Rs 3015 per share. Current market price of HUL share on BSE is Rs 2495.00 per share with intraday fall of 2.07% as on October 20, 2023. Hindustan Unilever shares declined 3.00% in last 1-week and gained 1.12% in last 1-months. Hindustan Unilever recommended Rs 18/share dividend with FV of Re 1 each for FY ending March 31, 2023. If you buy HUL shares now, you can fetch potential gain of 20.84%. Check details below:

HUL Q2: Hindustan Unilever Ltd (HUL) declared a surge of 3.86% year-on-year (YoY) in its standalone net profit to Rs 2,717 crore as against Rs 2,616 crore announced in the same quarter last year. The company's sale for the quarter under consideration surged 3.53% year-on-year (YoY) to Rs 15,027 crore as against Rs 14,514 crore last year, as per the regulatory filing.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter at Rs. 3,694 crores, up 9%. EBITDA margin improved by 130 basis points to at 24.6 %, added the regulatory filing of the company.

Rohit Jawa, CEO and Managing Director commented on the results and said, "FMCG demand is likely to continue a gradual recovery with tailwinds from the upcoming festive season, sustained buoyancy of services and Government's thrust on capex. At the same time, we need to be watchful of volatile global commodity prices as well as the impact of monsoon on crop output and reservoir levels."

HUL Announces Rs 18/Share Interim Dividend: According to the BSE filing of the company issued on Oct 19, "declared an interim dividend of Rs. 18/- per equity share of face value of Re. 1/- each for the financial year ending 31st March, 2024. As intimated vide our letter dated 5th October, 2023, the record date for the purpose of determining the entitlement of the shareholders for the interim dividend has been fixed as Thursday, 2nd November, 2023, and dividend will be paid to the shareholders on or after Thursday, 16th November, 2023."

HUL Stock Outlook & Return: Last trading price of HUL share on BSE is Rs 2495.00 apiece. Its 52-week high price is Rs 2768.50 per share and 52-week low price is Rs 2393.00 per share, respectively. The company has a market capitalisation of Rs 5,86,223.02 crore. HUL stock fell 4.04% in last 1-year, offered a rally of 0.63% in last 2-years, soared 14.87% in last 3-years, and gained 57% in last 5-years.

Valuation: According to Motilal Oswal, "The outlook for HUVR remains balanced as lower commodity costs and a gradual recovery in rural demand could be offset by reduced leverage on pricing and increased competition from smaller players in some categories. We reiterate our BUY rating with a TP of INR3,015."

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 Motilal Oswal. 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.