HUL Q1 FY 2014 Result Analysis

Hindustan Unilever (HUL) reported average set of numbers for the first quarter of current financial year with tepid volume growth of just 4% YOY. Net profit reported for the quarter was at Rs.1,019 crores on revenues of Rs.6,687.49 crores against net profit of Rs.1331.19 crores on revenues of Rs.6,250.15 crore in the corresponding quarter last year.

Year on Year the net profit has fallen 23% while revenues have gone up 7%. For FY-14, HUL is expected to generate around Rs.28000 crores of revenue and Net profit of Rs.4000 crores, against revenue of Rs.26317 crores and Net profit of Rs.3829 crores in FY-13.

HUL back in top 10 market cap list after 3 years

The FMCG major, Hindustan Unilever, has outperformed Sensex by huge margin to get back into the elite club of top 10 companies with highest market capitalization in India. 

HUL hit historic high of Rs 496 today, toppled ICICI Bank to become the country's 10th most valued firm in terms of market capitalization. HUL outperformed the Sensex during the past one year gaining 57% as compared to 2.4% rise in the benchmark Sensex. 

However investors should stay cautious as the valuation is quite stretched. The company's shares are valued at more than 33 times based on FY-13 earnings while the benchmark index sensex is valued at around 15 times for the same financial year.

Buy Hindustan Unilever for short term trading

Hindustan Unilever made a new life time high today and remained strong throughout the trading session today as on 13th June 2012. The stock touched a lifetime high of 448.50 before closing for the day at 447.50. 

For the past few trading sessions the stock is witnessing strong delivery based buying which suggest that there is more upside left in the stock. Traders can go long at the current levels of 446, 447 keeping a tight stop loss at 439 for a possible target of 460 in next few trading sessions. However if stock moves past 460 continue to hold the stock with insurance of trailing stop loss placed 2% below the then existing price.