Hindustan Unilever Ltd. share price target

The Russian revolutionary leader Vladimir Lenin once said, “There are decades where nothing happens, and there are weeks where decades happen.”

Sanjiv Mehta as MD & CEO of HUL over 2013-2023 delivered impressive CAGR of 20% in TSR and 13% in EBITDA. HUL stock's P/E rerated to ~50x from ~25-30x (highest rerating in sector).

As we welcome Mr. Rohit Jawa as the new MD & CEO of HUL, we believe, it is important to reflect on HUL CEOs' performance history over the past 30+ years and outline our expectations from Rohit. History may not repeat itself, but it does often rhymes and provide valuable insights.

Growth momentum continues with 16% YoY topline growth in FY23 and market share gains in >75% of the portfolio

Recommendation With a 13% upside from the CMP, we maintain our long-term BUY rating on the stock.

HUL’s 4Q performance of 11% YoY revenue growth and 4% volume growth (UVG) were below expectations as the consensus assumption of (immediate) volume growth trajectory improvement with passing on benefits of raw material correction (pricing growth has come down from ~11% to ~7% sequentially) to consumers has not come true.