HIN­DUS­TAN UNILEVER

{Ticker : 500696 {FV: ₹1 {52-Week H/L: ₹1288/782.95

Flash News Investment - - RECOMMENDATIONS -

We had rec­om­mended Hin­dus­tan Unilever in Vol­ume No. 33, Is­sue No. 44 (dated Au­gust 21, 2017), when the scrip was trad­ing at Rs 1175. Our rec­om­men­da­tion was based on fi­nan­cial per­for­mance and ac­qui­si­tion with foray in new ar­eas. The com­pany has come up with its Q2FY18 re­sults which beat the street es­ti­mates. The vol­ume growth recorded was 4 per cent, but its rev­enue de­clined by 2 per cent YoY due the im­pact of GST. The com­pany's EBITDA in­creased 20 per cent and PAT grew 16 per cent YoY and its mar­gins have re­mained at sus­tain­able level. The com­pany man­age­ment is op­ti­mistic about the GST roll-out and said that its busi­ness has sta­bilised and would show re­cov­ery in H2FY18. The com­pany is also spend­ing on ad­ver­tise­ment and pro­mo­tions to sup­port their in­no­va­tive prod­ucts. We rec­om­mend our in­vestors to HOLD the scrip.

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