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[Lavanay]

Hindustan Unilever Ltd
*CMP Rs203, BUY***

*Target price Rs244,  Upside 20.2%*

ä       Net sales slightly above expectations at Rs36.9bn led by strong 18%
yoy growth in HPC and 17% growth in foods segment.

ä       Higher adspend and staff cost restricts margin expansion. EBIT
margins in the personal products segment witnessed sharp 250bps improvement.

ä       Strong revenue growth coupled with higher other income drives net
profit.

ä       We expect HUL to register revenue and profit CAGR of 12% and
12.9%respectively over the next two years. Recommend Buy with a price
target of Rs244 - an upside of 20.2%.

Source : IndiaInfoline