Rich Valuation & Near-term Concerns Outweigh Strong Numbers Hindustan Unilever (HUL) has delivered a strong performance in 4QFY17 on the back of trade pipeline build-up post demonetisation, lower A&P; spends and improved traction in premium portfolio. Net sales for the quarter grew by 6.8% YoY to Rs81bn backed by 4% YoY growth in volume. EBITDA and net profit (before exceptional items) increased by 12.2% YoY and 7.6% YoY to Rs16.5bn and Rs11.2bn, respectively. We estimate HUL to report 11.7% and 14.7% CAGR in revenue and earnings, respectively through FY17-19E. We expect the demand to witness a strong recovery in FY18, although GST roll-out...