2200% Dividend In Q4 FY23: FMCG Major Sets Nov 2 As Record Date For Dividend, Buy?

Large cap FMCG player, Hindustan Unilever Ltd today fixed November 2, 2023 as the record date for interim dividend. Board of directors of Hindustan Unilever will meet on October 19, 2023 to consider unaudited standalone and consolidated financial results for the quarter and half ended September 2023 and also consider proposal of payment of interim dividend the same day. Hindustan Unilever shares gained 0.59% in trade today to settle at Rs 2522.30 per share on BSE. Check details below:

Hindustan Unilever To Consider Dividend, Results: According to the BSE filing of Hindustan Unilever dated October 5, 2023, "Pursuant to Regulation 29(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'), this is to inform that a meeting of the Board of Directors of the Company will be held on Thursday, 19th October, 2023, inter alia, to consider:

- the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended 30th September, 2023 along with the Limited Review Report of the auditors for the corresponding period;

- consider the proposal for payment of Interim Dividend, if any, for the Financial Year ending 31st March, 2024."

Record Date for the purpose of determining the entitlement of shareholders for the Interim Dividend, if any, has been fixed as Thursday, 2nd November, 2023.

Hindustan Unilever Dividend History: Earlier this year, Hindustan Unilever Ltd (HUL) declared a final dividend of Rs 22 per share for the financial year ended March 2023 or 2,200% of the face value of Re 1 per share. As HUL had already offered Rs 17 per share interim dividend to its shareholders in FY23, total dividend declared by HUL in FY23 stood at Rs 39 per share.

Hindustan Unilever Ltd. has declared 48 dividends since March 27, 2001. At the current share price of Rs 2522.30 per share, it offers a dividend yield of 1.55%, according to Trendlyne.

Hindustan Unilever Stock Outlook & Return: Last trading price of HUL share on BSE is Rs 2522.30. Its 52-week high price is Rs 2768.50 per share and 52-week low price is Rs 2393.00 per share, respectively. The company has a market capitalisation of Rs 5,92,637.40 crore. HUL stock offered a rally of 2.52% in last 1-week, fell 8% in last 3-months, declined 5% in last 1-year, and slipped 6.88% in last 2-years.

Hindustan Unilever stock gained 19% in last 3-years and soared 62% in last 5-years.

Valuation: Brokerage firm SBI Securities has assigned buy call, in its brokerage report dated September 21, to HUL stock with target price of Rs 2829 per share and gave a target time of 12 months when the stock can reach the target price. According to the analyst, "At current price, HUL is trading at FY24E/FY25E P/E multiple of 52.1x/46.0x respectively which looks fairly valued." The company is focusing to step-up its A&P investments. The A&P investments increased to 9.9% of sales in 1QFY24 vs. 8.8%/9.5% in 4QFY23/1QFY23 respectively. Price growth is expected to be flattish or negative in the coming quarters. Growth in coming quarters will mostly be volume led rather than price led. Competition is likely to go up as company is witnessing resurgence of small players in some categories. The company would focus more on sustaining volume growth, added SBI Securities.

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