HUL Q1 Results Review - Harsh Summer, Price Cuts Lifts The Quarters' Volumes: Centrum

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Centrum Broking Report.Hindustan Unilever Ltd.’s Q1 FY25 print was in-line with our estimates; revenue/Ebitda/adjusted profit after tax grew 1.3%/ 2.4%/3.1%, led by negative pricing and 4.0% volume growth. Given high food inflation impacting mass consumption, management cited it saw some green shoots and recovery in rural markets. With drop in prices for top-4 commodities – CPO, caustic soda, crude oil, and soda ash, gross margin inched up to 51.4% (+154 bp). Despite higher ad-spends +11% (+200 bp), and other expenses +6.9%, with lower employee costs by 7.5%, Ebitda grew 1.4%, settling Ebitda margin at 23.5% (+26bp) YoY. To maintain price-value equation, HUL took pricing actions in mass detergents, soaps and BPC portfolio, yet expects gross margins to improve given premium mix and operating leverage despite increase in media spends. We remain cautiously optimistic expecting low-single digit volume growth as near term operating environment continue to be competitive. Considering management commentary on price increases in H2 FY25 we have tweaked earnings and retain Reduce rating, with a revised DCF-based target price of Rs 2,636 (implying 49.2 FY26E EPS)..Click on the attachment to read the full report:.HUL Q1 Results Review - Recovery Mostly Priced In: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HUL Q1 Results Review - Harsh Summer, Price Cuts Lifts The Quarters' Volumes: Centrum

The brokerage remains cautiously optimistic on the stock expecting low-single digit volume growth as near term operating environment continue to be competitive.

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HUL Q1 Results Review - Harsh Summer, Price Cuts Lifts The Quarters' Volumes: Centrum

The brokerage remains cautiously optimistic on the stock expecting low-single digit volume growth as near term operating environment continue to be competitive.

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