Importance of Personal finances

There is always a first time for everything so also for investing. To invest you need capital free of any obligation. If you are not in the habit of saving sufficient amount every month, then you are not ready for investing. Our advice is :-

Save to atleast 4-5 months of your monthly income for emergencies. Do not invest from savings made for this purpose. Hold them in a liquid state and do not lock it up against any liability or in term deposits.

Save atleast 30-35 per cent of your monthly income. Stick to this practice and try to increase your savings.

Buy Hindustan Unilever Ltd.

CMP Rs203

Target price Rs244

• Net sales slightly above expectations at Rs36.9bn led by strong 18% yoy growth in HPC and 17% growth in foods segment.

• Higher adspend and staff cost restricts margin expansion. EBIT margins in the personal products segment witnessed sharp 250bps improvement.

• Strong revenue growth coupled with higher other income drives net profit.

• We expect HUL to register revenue and profit CAGR of 12% and 12.9%respectively over the next two years. Recommend Buy with a price target of Rs244 – an upside of 20.2%.