Growth revival, easing of curbs may help Hindustan Unilever stock shine

Higher demand for discretionary products and price hike to support margins

The stock of Hindustan Unilever (HUL), the country’s largest listed consumer company, has been underperforming its peers and the benchmark indices in September. Valuation worries after the price run-up in August, margin pressure, and weaker earnings growth than peers in recent quarters led to this muted stock performance.

This weak run may soon come to an end as improving demand and easing concerns on the margin front are making brokerages optimistic about the company. The key near-term trigger is demand revival and the impact on volume growth after the Covid-hit June quarter. 

Easing of restrictions, extended store operations, and rising mobility led