Hindustan Unilever Limited: Execution levers to support DD revenue growth; Pullback overdone

研报英文原文证据摘录

Hindustan Unilever Limited: Execution levers to support DD revenue growth; Pullback overdone

nflation risks, further providing conviction on Revenue - 27E (Rs mn) 719,087 715,804 -0.5%

Revenue - 28E (Rs mn) 776,679 779,966 0.4%

sustaining DD revenue growth in the coming quarters. Our earnings forecasts are Adj. EPS - 27E (Rs) 47.63 48.55 1.9%

broadly unchanged. The share price correction of ~6% post Q1 print is more than Adj. EPS - 28E (Rs) 54.20 53.94 -0.5%

pricing in the slight miss on volume and we find risk/reward favorable at current Adj. EBITDA - 27E (Rs mn) 161,839 164,791 1.8%

levels. OW. Adj. EBITDA - 28E (Rs mn) 182,618 181,984 -0.3%

• Stable consumption environment. Demand remains stable with healthy Style Exposure

underlying consumption. Earlier concerns that inflation would hurt FMCG

demand have not played out materially. Rural growth has stepped up over the

last few quarters and remains robust, while urban demand is also steady. HUL

noted that both mass and premium portfolios are competitive, though premium

is structurally growing faster in many categories, including rural markets. HUL

expects FY27 growth ahead of FY26 with its outlook already factoring in

macro and portfolio risks. Key watch-outs are commodity volatility, palm oil-

led pressure in soaps, tea inflation and recovery in mass personal care volumes.

• Home Care - Strong growth momentum. Home Care delivered 14% USG,

driven by high-single-digit UVG. Fabric care benefited from a step up in bars/

powders while liquids sustained their DD growth momentum. Household care

witnessed accelerated growth led by market development in Vim Liquids

(+DD). While HUL has taken calibrated price increases across the segment to

offset commodity pressure, further action will depend on crude-linked