“Hindustan Unilever (HUL), we attended analyst day organized by HUVR which focused on it strategy, recent innovation/product launches and sustainability initiatives. With a core focus on volume growth, the company has brought in product innovation (resulting in premiumisation) and improved its supply chain by leveraging technology”
“HUVR has increased its efforts towards understanding consumer and also address the problems of distributors. Increased its reach in the rural market and to expand further through engagement with telecom companies (already implemented in four states). HUVR would continue to focus on its existing product portfolio and expand its offerings in categories where its presence is not broad based (eg:- expand in Hair Care and Foods space). Sustainable living plan with a target to contract 100% of its raw material requirement.”
“We believe sustained volume growth and ability of HUVR to gain market share and improvement in its product mix is encouraging. The company will also benefit from the increase in its rural reach and now plans to focus on “Perfect Store” strategy which would improve its visibility in the interiors. We maintain our estimate and continue to prefer HUVR in the large cap. At a CMP of Rs 428, the stock trades at 30x FY13E and 26x FY14E. We recommend an Accumulate with a price target of Rs 456,” says Dolat Capital research report
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