Hindustan Unilever Ltd. share price target

Underlying pricing growth tapered down in Q4 due to softening input cost; volume growth at 4% YoY

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.

HUL’s 3Q results met consensus expectations; however, increase in royalty and
central service fees (by 80bps) has been a dampener.

Q3 revenue grew 16% YoY with volume growth of 5%; EBITDA margin improved sequentially by 70bps

HUL's analyst meet always gives the feeling of it being a complex business (keywords of robotics, data lakes, nanotech, many 4-letter acronyms etc.). However, this analyst walked away with higher visibility and confidence on its simple business model.