HUL better placed to fight inflation; negatives priced-in stock: Analysts

Hindustan Unilever (HUL) shares surged the most in seven weeks, up 4 per cent to Rs 2,230 apiece on the BSE in Thursday’s intra-day trade, after the fast-moving consumer goods (FMCG) company reported in-line result for the March quarter (Q4FY22).

While analysts see near-term margin compression, on expected lines, due to rise in commodity prices, they believe HUL is relatively better placed to fight the inflation woes.

Edelweiss Securities is positive on HUL's ability to outgrow the market, as well as its pricing power underpinned by distribution expansion, deepening direct reach and product innovation initiatives.

“Although inflationary raw materials may