Hotline: 1800 102 2007
Hotline: 1800 102 2007
May, 18 2018

HUL tops ITC in terms of m-cap after 13 years

Emkay Global Financial Services is also positive on HUL with a target price of Rs 1,620.

HUL tops ITC in terms of m-cap after 13 years

Hindustan Unilever (HUL) surpassed ITC in terms of market capitalisation dfto become the most valued firm in the FMCG space and fourth most valued company in India after TCS, Reliance Industries, and HDFC Bank.

Market capitalisation (m-cap) of HUL was at Rs 3,45,383 crore in Friday's morning trade at around 11.15 am (IST), whereas ITC's m-cap was at Rs 3,42,940 crore at around the same time.

An outperformance by HUL aided the company to surpass ITC. On a year-to-date basis, the share price of HUL has jumped 16.47 per cent till May 17, whereas ITC advanced just 6 per cent during the same period.

TCS, country's most valued firm, has m-cap of Rs 6,64,296 crore, followed by Reliance Industries Ltd (Rs 5,97,878 crore) and HDFC Bank (Rs 5,24,095 crore).

HUL on May 14 posted 14.2 per cent jump in its standalone net profit to Rs 1,351 crore for the fourth quarter ended March 31, supported by robust double-digit volume growth.

It had reported a net profit of Rs 1,183 crore in the same period last year.

HUL's net sales during the quarter under review stood at Rs 9,003 crore compared to Rs 8,773 crore in the same quarter last year.

Global brokerage firm Credit Suisse is bullish on HUL and recently revised its target price upward to Rs 1675 from Rs 1,530 earlier. "HUL delivered a very strong Q4 by growing volumes at 11 per cent and PAT at 26 per cent. What was most positive was that the PAT growth was despite a sharp 25 per cent jump in ad spends."

Emkay Global Financial Services is also positive on HUL with a target price of Rs 1,620.

"Consistent outperformance vs peers, improving volume growth trend and margin upsides justify HUL's current rich valuation at 44x FY20E EPS," Emkay said in a report.

On the other hand, ITC on May 16 posted 9.86 per cent increase in standalone net profit at Rs 2,932.71 crore for the fourth quarter ended on March 31, 2018.

It had posted a net profit of Rs 2,669.47 crore in January-March period a year ago.

Brokerages are also bullish on ITC post Q4 numbers. Jefferies has 'Buy' rating on ITC with a target price of Rs 330. "Key highlights of the quarter were mild sequential recovery in cigarette volumes and strong improvement in FMCG segment profitability. We expect FY19 to be a recovery year for cigarette business given likely lower tax hikes post a tough FY18.

HDFC Securities maintained 'Buy' on ITC with a target price of Rs 358. "Our long-term positive stance on ITC derives from its status of being the cheapest consumer large-cap stock in India."

sharebtn
Comment
user
email
mobile
address
star
Related opportunities
  • Quick Service Restaurants
    About Us: Greetings from USPFC!! U.S. Pizza and Fried Chicken have come..
    Locations looking for expansion Rajasthan
    Establishment year 2013
    Franchising Launch Date 2014
    Investment size Rs. 5lac - 10lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Jaipur Rajasthan
  • Electric Vehicles
    E-Trio is an EV company with a vision to be..
    Locations looking for expansion Haryana
    Establishment year 2018
    Franchising Launch Date 2020
    Investment size Rs. 30lac - 50lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Faridabad Haryana
  • Express Food Joints / Drive Through
    About Us: Founded in 2019, we are offering palatable cheesiest food..
    Locations looking for expansion Rajasthan
    Establishment year 2019
    Franchising Launch Date 2019
    Investment size Rs. 10lac - 20lac
    Space required 150
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Jaipur Rajasthan
  • About Us: Virohan Institute of Health & Management Science is one..
    Locations looking for expansion Haryana
    Establishment year 2017
    Franchising Launch Date 2017
    Investment size Rs. 2lac - 5lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Gurugram Haryana
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities