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HUL Q3: Boring is good

February 03, 2020 / 02:45 PM IST
HUL Q3: Boring is good

PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Hindustan Unilever Ltd (HUL) [Market cap: Rs 448,895 crore; CMP: Rs 2,073] reported another quarter of 5 percent volume growth amidst tough macro conditions, faltering consumption growth and liquidity issues in the distribution channel. Things worsened over the quarter with domestic FMCG volume growth dropping to 1 percent in the month of December. Overall, for the three months ended December 2019, rural demand grew half as fast as urban demand and the northern and eastern states lagged the south. Chart:...

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