HUL's first quarter numbers have come in better than street expectations, and brokerage firm HDFC Securities to suggest a buy rating on the scrip.

The scrip has been forecast to reach a target price of Rs. 1304 within 12 months.

The HUL revenue was up by 5% on a year-on-year basis at Rs. 83.5 billion. The domestic consumer business registered a healthy 6% growth, while EBITDA and APAT remained up at 14% and 15% respectively.

A document shared by Hindustan Unilever to the exchanges showed EBITDA rising by Rs 1866 crore, while net profit went up 9% to Rs 1283 crore.

Analysts suggested that GST implementation at HUL has been smooth and restocking benefits will be visible in the second quarter of FY18.

HUL on its part also suggested that there has been least disruption owing to GST. The company pushed its first GST invoice on 8:08 hours on July 1. The company supplies have been normal while payments to vendors has been made since the first day of the GST launch.

Pricing related concerns on its product-portfolio might have been a cause of worry. But, HUL has had an assortment of products and hence the GST impact seems to have averaged. The tax change has brought down effective price of detergent bars, skin cleansers, toothpastes, and hair oils while it has increased the price for detergent powders, hair care products excluding hair oil, skin creams and color cosmetics, and instant coffee.

Verticals such as home care, personal care, food and refreshments registered healthy growth of 6%, 4%, 4% and 11% respectively. A 12% revenue CAGR through FY17-20 has been expected, which is higher than 8% in the last five years said HDFC analysts.

The assumption of revenue growth is based on premiumisation across portfolios, expansion in branded markets post GST, improved consumer sentiment and increased direct reach programs.

The stock soared to its 52 week high of 1195.10 on July 19 on the BSE, but ended the day 5.30 points or 0.46% in the red.