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

3. The big FMCG company Hindustan Unilever Ltd. is a bull market, and analysts advised traders to purchase calls with a maximum target price of Rs 2900 per share. Hindustan Unilever announced its Q4 FY24 results today along with a dividend recommendation of Rs 24 per share. But compared to the same time last year, the FMCG behemoth reported a 6% decline in standalone net profit to Rs 2406 crore for the fourth quarter that ended on March 31, 2024, from Rs 2552 crore.

Hindustan Unilever’s share price is now trading at Rs 2259.15 on the BSE, down 0.16% from the previous day. In the previous week, Hindustan Unilever’s share increased by 1.72%. Here are the specifics:

Vaishali Parekh, Vice President, Technical Research at Prabhudas Lilladher Pvt. Ltd., said that three analysts recommend buying: “On the weekly chart, Hindustan Unilever has witnessed a decent erosion from 2680 levels and has arrived near the lower end of the support zone.” In the next few days, traders might purchase the stock with a target price of Rs 2600.”

Over the last six months, Ruchit Jain of 5paisa stock has seen a downturn and has underperformed the index. However, the daily charts show indications of a turnaround as the prices are about to break out of a “falling wedge” pattern. Positive divergence on the RSI oscillator is also indicative of a reversal. As such, we anticipate a short-term retreat. For a possible objective of Rs 2,380–2,400, short-term traders can try to purchase the stock in the region of Rs 2,240–2,220. For long bets, the expert advises keeping the stop loss below Rs 2,150.

A buy call with a target price of Rs 2900 per share has been set by Motilal Oswal.

HUL Declares Dividend: “Recommended a final dividend of Rs. 24/- for the financial year ended March 31, 2024, on equity shares of Rs. 1/- each,” according to HUL’s April 24, 2024, regulatory filing. On November 16, 2023, the company had previously distributed an interim dividend of Rs. 18 per share. For the specified period, the total dividend is Rs. 42/- per equity share with a face value of Rs. 1 per share.”

HUL Q4: Compared to Rs 14,638 crore recorded in the same period last year, the FMCG behemoth saw a little increase in its operating revenue to Rs 14,693 crore for the Q4 that concluded on March 31. Personal care and cosmetics revenue fell 2.7%. The company’s turnover for the fiscal year that ended on March 31, 2024, was Rs. 59,579 crores, compared to Rs. 58,154 crores for the fiscal year that ended on March 31, 2023, according to the company’s exchange filing on April 24.

According to the firm, it had a strong showing for the quarter in question, with an underlying sales volume increase of 2%.
EBITDA for the fourth quarter of this year was Rs 3,435 crore, down 1% YoY from the same period the previous year when it was Rs 3,471 crore. The Q4 ending March 31, 2024, saw a 30 basis point decline in EBITDA margins to 23.4%.

The CEO and Managing Director, Rohit Jawa, stated: “We achieved the Rs 10,000 crore net profit milestone in FY24 and produced a strong performance with 3% USG. Our goal is still to achieve operational excellence, and we’ve been increasing our investments in long-term skills and brands while also regaining our gross margins. Going forward, I anticipate that improved macroeconomic data and a regular monsoon will lead to a progressive improvement in consumer demand.”

HUL Share Performance: As of 07/07/2023, the price of HUL Share on the BSE was Rs 2768.50, and as of 16/04/2024, it was Rs 2170.25. The market capitalization of the firm is Rs 5,32,182.42 crore. After falling 4.73% over the previous three months, 9.42% over the previous year, and yielding a 6% return over the previous two, Hindustan Unilever Ltd.’s shares plummeted by 1.96% over the previous three years before rising 30% over the previous five.

Hindustan Unilever About: With a 90-year history in India, Hindustan Unilever Limited is the biggest Fast-Moving Consumer Goods (FMCG) company in the nation. Its portfolio of more than 50 brands, which cover 16 FMCG categories and are a part of millions of Indian customers’ daily lives, is robust and diverse. According to its official website, it produces over 65 billion items a year, which are distributed to customers via nine million retail locations and other internet commerce platforms.

Disclaimer: Prabhudas Lilladher, Motilal Oswal, and 5paisa’s brokerage reports were used to choose the stock. If judgments are made based on this article, Greynium Information Technologies, the author, and the relevant brokerage house shall not be held responsible for any losses. Before making any financial decisions, Goodreturns.in recommends customers consult with qualified professionals.