Hindustan Unilever Ltd. share price target

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.

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.