HUL Q3 Results Review: Dolat Capital Maintains 'Accumulate' On The Stock, Says Subdued Demand Persists

In Q3, HUL’s majority portfolio gained market share. Beauty and wellbeing reported low-single-digit decline due to muted performance in skin care and colour cosmetics..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..Dolat Capital Report.Hindustan Unilever Ltd.'s Q3 FY25 revenue/Ebitda were in line, while adjusted profit after tax was below our estimates. Revenue grew by mere 1.4% with flat volume growth due to adverse mix and subdued demand conditions. We expect consumption trends to remain subdued in the near term. Gross margin contracted by 80bps YoY due to volatile commodity prices. A 80/20/10bps increase in raw material cost/employee cost/other expense led to Ebitda margin contraction of 10bps. Going ahead, Ebitdam is expected to be at the lower end of the 23-24% range. We have lowered our FY26/27E EPS estimates by 3.4/3.4% YoY at Rs 49.7/54.8 to factor in Q3 performance and anticipated pressure in margin expansion. Despite near-term inflationary concerns, we remain confident about long-term premiumization strategy. Valuing the stock at 50x FY27E EPS we maintain ‘Accumulate’ rating with target price of Rs 2,740.Click on the attachment to read the full report:.HUL Q3 Results Review: HDFC Securities Downgrades The Stock To 'Add', Lowers Target Price — Here's Why.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 Q3 Results Review: Dolat Capital Maintains 'Accumulate' On The Stock, Says Subdued Demand Persists

Despite near-term inflationary concerns, Dolat Capital remain confident about HUL's long-term premiumization strategy.

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