HUL hits new high

The stock is outperforming the market by rising 6%post Q4FY12 earnings, compared to 3% drop in the benchmark index Sensex.

Hindustan Unilever (HUL) is trading higher by 2% at Rs 441, also its lifetime high market price in an otherwise subdued market on the National Stock Exchange. A combined 1.18 million shares have changed hands on the counter till noon deals on both the exchanges.

The fast moving consumer goods (FMCG) stock is outperforming the market by rising 6% since the announcement of Q4 earnings on April 30, compared to 3% drop in the benchmark Sensex.

The company has reported a 30% year-on-year (y-o-y) growth in operating profit at Rs 830 crore and margin improvement of 160 bps to 14.5% due to decline in advertisement and promotion spends and contraction in other income. Revenues were up 16% yoy at Rs 5,770 crore in Q4FY12.

 

The company’s personal products segment, which accounts 30% for its revenue, have come back to normal after registering 17% yoy growth in revenues to Rs 1,710 crore and a higher 23% growth in EBIT to Rs 450 crore.

Analyst at Angel Broking expect HUL to post around 16.1% compound annual growth rate (CAGR) in its top line over FY2012-14, largely aided by steady performance of the company’s personal care and foods division. In terms of earnings, the broking firm expects HUL to post CAGR of around 17.3%.