Hindustan Unilever (HUL) share price: HUL share price surged over 1% to a 52-week high on Tuesday ahead of Q1 results and policy announcements in the union budget scheduled at 11 IST, which could have a significant impact on market performance. HUL share price today opened at an intraday low of ₹2,736.05 apiece, the stock touched an intraday high of ₹2,757.25 on the BSE.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, HUL and other FMCG spaces have given remarkable performances in two months, and HUL, from its recent low of 2,150, has quickly climbed beyond 2,700, crossing its previous all-time high. Technically, we are now seeing a long term price breakout and hence maintaining a positive outlook. Any dip can be considered a buying opportunity, 2,680 as support, and 3,000 as target.
Analysts estimate HUL's Q1 results to be similar to those of Q4FY24, with net profit improving moderately by 1.4% YoY and sales unchanged. The closure of GSK-CH's OTC distribution business in November 2023 is estimated to result in a 31% YoY drop in other operating income.
According to the Kotak Equities model, gross margin increased by around 15 basis points every quarter (+210 basis points year on year) to 52%. It expects a 23.3% EBITDA margin, up 20 basis points year on year, as gross margin gains are offset by a 25 basis point effective increase in royalty, an increase in A&P intensity to 10.5% of sales in order to maintain SOV > SOM, a 40-50 basis point impact from GSK CH's discontinuation of OTC product distribution, and negative operating leverage on fixed expenses.
Hindustan Unilever reported a 1.53% fall in consolidated net profit to ₹2,561 crore for the fourth quarter ended March 31, 2024, owing to factors such as deflation and commodity price softening.
According to HUL's regulatory filing, the company had a net profit of ₹2,601 crore last year.
HUL's net sales were nearly unchanged in the March quarter, at ₹15,013 crore. HUL's overall costs increased by 1.15% to ₹12,100 crore in the March quarter, from ₹11,962 crore the previous year.
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