HUL Q2 Review - Inflation, Rural Slowdown A Near Term Headwind: Prabhudas Lilladher
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
We are cutting FY22/23 earning per share of Hindustan Unilever Ltd. by 1.9%/0.2% on the back of-
inflationary environment impacting gross margins and
slowdown witnessed in rural demand neutralised partly by uptick in discretionary segments.
Despite the near term inflation challenges, we remain positive on HUL's structural story given that-
more than 75% of business is gaining share,
health food drink segment is likely to emerge as a key driver of growth with synergies ahead of guidance,
rebound in discretionary and out-of-home expected with improving mobility,
launch of direct-to-customer platforms for Lakme, Simple, Dermalogica and Love Beauty and Planet,
distribution gains from strategies like 'winning in many Indias' and Shikhar.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.