Demand, inflation woes still haunt HUL stock
- Rural slowdown, price hikes & higher base would impact volumes in the March quarter
- The prices of key inputs for HUL—crude and palm oil—have jumped significantly
Hindustan Unilever Ltd’s (HUL’s) investors are nervous. The relentless escalation in costs for fast moving consumer goods (FMCG) companies has come at a time when the demand environment is sombre. Some companies are likely to be more hurt than others, and HUL’s relatively high exposure to raw materials such as palm oil, and crude oil and its derivatives makes it more vulnerable given the surge in prices following the Russia-Ukraine conflict.