Hindustan Unilever: Broadly in-line, key segments grow double digit

研报英文原文证据摘录

Hindustan Unilever: Broadly in-line, key segments grow double digit

-23.5%. 3) HUL continues to grow strongly in the channels of the future From To % ch Cons.

(MT and E-Com). Q-Com grew 40-50% YoY via improved SKU availability and channel 03/26E 46.32 45.36 -2 65.00

specific assortments. 4) While there are some uncertainties from El Nino, how monsoon 03/27E 48.68 48.54 -0 48.24

pans out, and the ongoing geopolitical situations, HUL believes its guidance considers 03/28E 54.35 54.34 -0 53.48

such risks and hence it appears conservative. 5) HUL is investing significantly in capability

building and portfolio reshaping to secure its long term growth and value creation. Amit Sachdeva

Analyst

amit.s@ubs.com

Rising appeal for HUL, with favourable risk-reward +91-22-6155 6029

1) Sustaining close to double-digit revenue growth is quite a plausible scenario in our

Sidhant Jain

view, which would serve as key catalyst for the stock performance. 2) Home care, the

Associate Analyst

largest segment which is consistently delivering high single-digit volume growth (barring sidhant.jain@ubs.com

few exceptions), is inching closer to mid teens growth. 3) Lifestyle Nutrition appears to +91-22-6155 6000

have unlocked the double-digit growth trajectory (which was struggling earlier). 4)

Tushar Baijal

Beauty & Wellbeing too is a candidate for revival of growth in double-digits this year, led Associate Analyst

by significant product and pricing innovation across brands, and Minimalist also joining tushar.baijal@ubs.com

the organic growth momentum this year. 5) We also think HUL tends to get better +91-22-3051 5000

pricing and competitive advantage in an inflationary scenario; 6) Valuation in the

meantime has corrected significantly (c41x NTM PE, implying just about double-digit