Hindustan Unilever Ltd. share price target

Adjusted revenue growth was soft at 3% YoY, primarily led by volume growth while price growth remained flat. Rural (-1% 2Y CAGR volume) continues to underperform urban (at 3%). Home care revenue performance has subsided (vs last few quarters) to ~3% YoY value growth (~5% volume growth). Revenue growth in BPC and Food also remained soft at ~4% YoY each.

We maintain a BUY rating on the stock as we continue to remain positive on the stock.

HUL has a strategic agenda of driving volume growth and premiumisation, likely prioritising value, in our opinion. Rohit Jawa, new CEO, has the task of driving revenue growth when faced with headwinds of price deflation and resurgence of competition from price-warriors.

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