IISL - Hindustan Lever Visit Note (Neutral)
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Deadpresident
Mar 30, 2007, 4:10:18 AM3/30/07
to dps...@googlegroups.com
We recently met the management of HLL. We believe that it is difficult for
HLL to grow organically at a faster rate considering its sheer size and
mature status of categories in which it is present. Delay in entering new
categories and lack of inorganic growth is also a cause for concern.
HLL is currently trading at Rs205, which is 31% below its 52-week high
price of Rs296. As seen in chart 7, the company is trading at a one-year
forward P/E of 25x, which makes it look cheap, compared to historical
multiples at which it has been trading. However, on fundamental basis, we
are still not enthused by the prospects of the company going forward. The
stock looks expensive on PEG basis. It is trading at PEG of 2.0 and 1.9 for
CY2007 and CY2008 respectively.
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REPORTS >> http://DEADPRESIDENT.BLOGSPOT.COM
HLL to grow organically at a faster rate considering its sheer size and
mature status of categories in which it is present. Delay in entering new
categories and lack of inorganic growth is also a cause for concern.
HLL is currently trading at Rs205, which is 31% below its 52-week high
price of Rs296. As seen in chart 7, the company is trading at a one-year
forward P/E of 25x, which makes it look cheap, compared to historical
multiples at which it has been trading. However, on fundamental basis, we
are still not enthused by the prospects of the company going forward. The
stock looks expensive on PEG basis. It is trading at PEG of 2.0 and 1.9 for
CY2007 and CY2008 respectively.
--
REPORTS >> http://DEADPRESIDENT.BLOGSPOT.COM
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