Lower raw material costs, premium products to improve HUL's profitability

Faster growth of premium products is likely to add to HUL's profitability score

Hindustan Unilever (HUL) delivered a strong 33 per cent return in 2018, outpacing a 11 per cent rise in the BSE Fast Moving Consumer Goods (FMCG) index and about 6 per cent in the Sensex. 

While the company is riding high on steady volume growth, the Street will keenly watch out for the upside from the current levels, given its pricey valuation of 53.5 times its FY20 estimated earnings.

Among the triggers for the stock are prices of key inputs such as palm oil, which has dropped in the December 2018 quarter (Q3) on a sequential basis. Further, the recent sharp correction