Hindustan Unilver (HUVR) 2QFY21 result was better with our estimates. Overall business recovers sharply from -7%YoY revenue growth in 1QFY21 to +3% YoY in 2QFY21. Outperformance of health, hygiene and nutrition portfolio (c.80% revenue share, +10%YoY) helped offset c. 25%YoY decline in revenue from discretionary and out-of-home portfolio. Inflationary raw material cost lead to the decline in gross margins however rationalization of advertisement spending helped EBITDA margin to expand marginally. Rural growth remains resilient while urban continues to face COVID headwinds. Management expects raw material inflation to keep gross margin under...