HUL Q3 Review - Volume Focus Over Margins Continues: ICICI Securities
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.
ICICI Securities Report
Hindustan Unilever Ltd.’s strong double-digit growth in health, hygiene and nutrition portfolio was encouraging to note in Q3 FY21. However, underlying volume growth of 4% was a tad underwhelming.
We note that this underperformance could reduce given the company’s focus on volume growth even at the expense of gross margins in the near-term.
We like the -
1. increase in consumer-relevant innovation intensity for hygiene related products (and more),
2. double-digit growth in nutrition business (albeit potentially at lower margins),
3. increase in assortment and outlet coverage (back to pre-Covid-19 levels) and
4. continuing plans to gain market share in tea from un-organised players by partially absorbing input cost inflation.
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.