Hindustan Unilever Ltd (Q1 F12/08)CMP Rs247, Market PerformerTarget price Rs269, Upside 9%ä Records highest revenue growth of 19% in the last five years led by strong underlying volume growth of 10%. Soaps & detergents, personal products and foods segment record strong 20%, 23% and 15% growth respectively.ä Higher raw material and overhead costs pulled down margins. EBIT margins in the soaps and detergent segment witnessed sharp 140bps improvement. Strong revenue growth coupled with higher other income drives net profit.ä We expect HUL to register revenue and profit CAGR of 15% and 17.6% respectively over the next two years. Upgrade to Market Performer with a price target of Rs269 - an upside of 9%.Click below for the quarterly update of Hindustan Unilever Ltd.
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