Rs 24/Share Dividend: Buy Large Cap FMCG Stock, Highest TP Rs 2900: Motilal, PL, 5paisa Bullish

3 Analysts are bullish on large cap FMCG giant Hindustan Unilever Ltd and recommended traders buy call with highest target price of Rs 2900 per share. Today Hindustan Unilever declared its Q4 FY24 results and recommended dividend of Rs 24/share. However, the FMCG giant declared a drop in its standalone net profit by 6% to Rs 2406 crore for Q4 ended March 31, 2024 as against Rs 2552 crore declared in the year ago period.

Last trading price of Hindustan Unilever share on BSE is Rs 2259.15 per share with intraday fall of 0.16%. Hindustan Unilever share gained 1.72% in last 1-week. Below are the details:

3 Analysts Recommend Buy: According to Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher Pvt. Ltd, "Hindustan Unilever on the weekly chart has witnessed a decent erosion from 2680 levels and has arrived near the support zone at the lower end. Traders can buy the stock for a target of Rs 2600 in the next few days."

Ruchit Jain of 5paisa stock witnessing correction since last few months and underperformed the benchmark. But, signs of reversal visible on the daily charts as the prices have formed a 'Falling Wedge' pattern and is on the edge of a breakout. The RSI oscillator displayed a positive divergence, which is a sign of reversal too. Therefore, we expect a pullback move in the near term. Short-term traders can look to buy the stock in the range of Rs 2,240-2,220 for a potential target of Rs 2,380-2,400. The analyst has suggested to keep the stop loss on long positions below Rs 2,150.

Motilal Oswal has assigned buy call with target price of Rs 2900 per share.

HUL Declares Dividend: As per the regulatory filing of HUL dated April 24, 2024, "recommended a final dividend of Rs. 24/- for the financial year ended 31st March, 2024 on Equity Shares of Re. 1/- each. The Company had earlier paid an interim dividend of Rs. 18/- per share on 16th November, 2023. The total dividend for the said period amounts to Rs. 42/- per Equity Share of face value of Re. 1/- each."

HUL Q4: The FMCG giant witnessed marginal rise in its revenue from operations to Rs 14,693 crore for the Q4 ended March 31 as against Rs 14,638 crore reported in the corresponding period of last year. Revenue in beauty and personal care declined 2.7%. As per the company's exchange filing dated April 24, the Company's turnover for the financial year ended 31st March, 2024 was Rs. 59,579 crores as against turnover of Rs. 58,154 crores for the financial year ended 31st March, 2023.

The company said it delivered a robust performance for the quarter under consideration with an underlying sales volume growth registered at 2%.
EBITDA for the Q4 declined 1% year-on-year to (YoY) to Rs 3,435 crore as compared to Rs 3,471 crore in the similar quarter of last year. And, EBITDA margins contracted 30 basis points to 23.4% for Q4 ended March 31, 2024.

Rohit Jawa, CEO and Managing Director, said: "In FY24 we delivered a resilient performance with 3% USG and crossed Rs 10,000 crores Net Profit mark. We remain focused on driving operational excellence and have continued to build back our gross margins whilst stepping up investment in brands and long-term capabilities. Looking forward, I am optimistic of consumer demand gradually improving due to a normal monsoon and better macro-economic indicators."

HUL Share Performance: The 52-week high price of HUL Share on BSE is Rs 2768.50 (as on 07/07/2023) and 52-week low price is Rs 2170.25 (as on 16/04/2024). The company has a market capitalisation of Rs 5,32,182.42 crore. Hindustan Unilever Ltd shares fell 4.73% in last 3-months, declined 9.42% in last 1-year, and gave return of 6% in last 2-year, and fell again by 1.96% in last 3-years, and soared 30% in last 5-years.

Hindustan Unilever About: Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG) Company with a 90-year heritage in the country. It has a wide and resilient portfolio of 50+ brands, spanning 16 FMCG categories, which are a part of everyday life of millions of consumers across India. It manufactures more than 65 billion units annually, that are made available to our consumers through nine million retail outlets and many digital commerce platforms, according to its official website.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal, Prabhudas Lilladher, and 5paisa. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.