Reuters Market Eye - Hindustan Unilever
CLSA upgrades its target price on the stock to 485 rupees while retaining its "overweight" rating, calling the earnings "a strong all-around performance" that showed growth across volume, EBITDA, and margins.
Morgan Stanley says the results reflected "strong" volume growth and "even stronger pricing," adds earnings validate its call that large consumer companies are gaining volume market share at the expense of regional players.
IDFC analyst Nikhil Vora issues a more cautionary note, saying the foods business remains a concern, as does Hindustan Unilever's organizational structure.
"Inability to aggressively grow the foods business (Unilever overhang) remains a concern," he writes.
"For the market out performance to continue over a longer period, HUL needs to get 'leaner' in terms of organizational structure as well as extend its footprint to larger and more relevant categories," Vora adds.
