Hindustan Unilever may see a subdued quarter even as shares near 52-week high | Earnings Preview

The street is anticipating the company to report volume growth of 4-5 percent on a base of 4 percent last year. Commentary on rural demand would be key as peers like Marico, Godrej Consumer, and Dabur have spoken about weak demand sentiments as part of their quarterly business updates.

Godrej Consumer: Rural markets witnessed slower growth compared to urban.

Marico: Weak sentiments in rural markets has resulted in downtrading.

Dabur: Rural markets faced some liquidity pressure.

Among other factors that need to be watched include growth in the Home Care business, which is likely to be aided by price hikes. The street anticipates this business to grow 25-30 percent during the September quarter. Growth in the Beauty and Personal care business is likely to be in the low-to-mid-teens while Food & Refreshments may grow in the low-to-mid-sigle digits.

Some reports have also indicated that the company is in talks to acquire majority stakes in the direct-to-consumer brands, Wellbeing Nutrition and Conscious Food, to strengthen the in-house product category.

Shares of Hindustan Unilever have gained 10 percent this year and are trading 5 percent away from their recent 52-week high of Rs 2,734. The stock trades at 54 times its forward earnings for next year.