HUL - Demand, Margin Pressures Transitory: Prabhudas Lilladher
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Prabhudas Lilladher Report
Hindustan Unilever Ltd.’s 20% correction from the peak shows twin impacts of-
slowdown in rural demand due to lower farmgate income and lower remittances from workers and
Impact of Inflation, mix changes and base impact in key categories in urban India, partly neutralised by uptick in discretionary segments.
We believe that rural slowdown and inflation challenges are transitory and HUL's structural story is intact as-
more than 75% of business is gaining share which is at a decade high,
health food drink segment is likely to emerge as a key driver of growth led by distribution led gains and small packs,
sustained innovation across categories and launch of direct-to-consumer platforms for Lakme, Simple, Dermalogica and Love Beauty and Planet and
distribution gains from strategies like 'winning in many Indias' and SHIKHAR.
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