Hindustan Unilever Limited (HUL) has announced its second quarter results of 2010. Company has reported net profit at Rs.566 crore vs Rs.420 crore (last), shows growth of 34.76% on year-on-year basis (YoY). Its net sales jumped 10.9% at Rs.4,680 crore versus Rs 4,220 crore in same period of FY10. Adjusted profit after tax of the company was reported at Rs.566 crore versus Rs.499.7 crore, hence a growth of 13.27%. Operating profit margin (OPM) declined at 13.8% versus 15.4% due to increase in cost of raw materials.
The company has declared interim dividend of Rs.3/share (good dividend).
Our trading view: Buy HUL above 295 levels for target of 319 / 333 in short term. Stop loss should be placed at 286. If this stock is held for long term(more than 2 years), the returns expected can be around 60%. We see a very limited downside from here.
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