HUL's high valuation is natural, considering consistent market share gain with margin expansion and strong RoCE. We expect HUL to be a key beneficiary of GST and premiumisation. We increase our target P/E to 42x (40x earlier) on Jun-19EPS. Our TP is Rs 1,304 (Rs 1,200 earlier). We maintain BUY. HULs 1Q numbers came in better than expectations, despite channel destocking pressure. HULs net revenue was up 5% YoY at Rs 85.3bn (1% expectation). The domestic consumer business registered healthy 6% growth, with flat UVG (-1% expectation). EBITDA and APAT were up 14% and 15% respectively.