BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Management remains confident on not only double-digit sales growth prospects for the GlaxoSmithKline Consumer Healthcare Ltd. business but also a 550–700 basis point Ebitda margin improvement over the medium term, an impressive combination. The company identified media buying, procurement, technology and data, supply chain, and manufacturing efficiencies as key drivers for medium term margin improvement for the GSKCH business. Despite lockdown and integration from April 1, 2020, GSKCH (as shared in the Q1 FY21 results update) not only grew 5% YoY but also contributed positively to margins (180 basis point margin decline YoY at merged level ex-GSKCH was restricted to 120 basis points decline including GSKCH).
We remain positive on HUL from a medium-term perspective, encouraged by robust earnings growth potential beyond the near term owing to its portfolio and execution strengths and significant synergies in FY22E as a result of GSKCH. These factors suggest premium multiples are likely to sustain.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR