Analysts see 19% upside in HUL (FMCG) stock on strong outlook, product mix
Published On: Monday, September 13, 2021 | By: Team KnowMyStock
After clocking a big rally, Hindustan Unilever shares may take a breather before hitting fresh record highs, according to some analysts. They are expecting up to 19 percent upside from current market levels, deriving comfort from the company’s long-term growth strategies, along with an increase in prices to protect margins. "The management, during its Annual Investor Meet, appeared upbeat on the medium-term growth outlook and maintained double-digit EPS growth. The commentary emphasized significant leverage on data analytics and technology across functions, which will be a competitive advantage, going ahead," said a report by Emkay Global Financial Services dated September 12. It, however, added that post the recent run-up, there is limited upside potential in the stock.
The stock of the fast moving consumer goods (FMCG) company has soared 14.6 per cent over the past two months as against a 11 per cent rise in the S&P BSE Sensex. The S&P BSE FMCG index, meanwhile, gained 10 per cent during the period, ACE Equity data show.
HUL’s management is optimistic on medium-term growth outlook and targets double-digit earnings per share (EPS) growth. HUL continues to drive strong cost savings and expects another 300-400bps margin gain to come from GSK distribution and supply-chain synergies.
Tags: Hindustan Unilever shares stock of the fast-moving consumer goods double-digit earnings per share (EPS) growth
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