Target: ₹2,820

CMP: ₹2,481.70

Hindustan Unilever Ltd has reported a revenue growth of 3.6 per cent y-o-y in Q2-FY24, backed by growth across all segments.

Gross profit was up 19.2 per cent y-o-y, owing to a significant fall in raw material cost (down 15.1% YoY). EBITDA rose 9.4 per cent y-o-y. EBITDA margin expanded about 130bps YoY. Net profit increased 3.9 per cent y-o-y.

HUL reported a resilient performance in Q2FY24. Recovery in volumes and continued improvement in market share will add to the topline.

Also fall in input cost prices will aid in expansion of margins.

HUL reported a decent performance in Q2-FY24 with both topline and volumes improving. Despite intense competition, recovery in volumes and continued improvement in market share are expected to support performance in future. Further, fall in raw material prices will aid in volume growth as the benefit of lower costs will be passed on to consumers. Being the market leader, HUL is well positioned to reap the benefits of its high market share across verticals in the near future. We reiterate our Buy rating on the stock with a revised target price of ₹2,820 (earlier ₹2,900).