Demand issues and volume-margin trade-off likely to weigh on HUL stock| Trending Viral hub

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Hindustan Unilever’s performance in the third quarter of FY24 was lackluster, with both sales and operating profits barely moving from the year-ago period due to price cuts and higher advertising costs. In addition to weak demand, the important fast-moving consumer goods sector faces increased competitive pressures, particularly from regional players, which, together with a slow recovery in rural markets, could put pressure on revenues in the future. .

Margins are expected to remain rangebound as the benefits from falling raw material costs are expected to be offset by increased promotional budgets. Given the disappointing performance and weak near-term outlook, most brokerages have cut their earnings estimates by up to

First published: January 21, 2024 | 22:17 IS

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