ICICI SECURITIES ON HINDUSTAN UNILEVER ; MAINTAIN BUY | TARGET ₹2,200 (CMP ₹1,865)

• Target implies 18% upside from CMP. • HUL trades at 38x one-year forward P/E, a 23% discount to its five-year average of 50x. • Recommends ₹5,000 Cr share buyback, representing 1.2% of market cap, instead of further acquisitions or special dividends. • HUL trades at 6x FY27E sales with 23% EBITDA margins, making its own shares an attractive acquisition. • Strong cash generation, negligible debt and low capex requirements support the buyback proposal. • Buyback could increase parent Unilever's effective ownership without additional investment. • Expects FY28 revenue of ₹80,309 Cr, EBITDA of ₹18,510 Cr and net profit of ₹12,995 Cr.

HINDUSTAN UNILEVER LTD.

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