Q1 results: High valuations factor in strong show by HUL, stock gains

Q1 good, rural demand improving; oil price impact to be monitored

The share price of Hindustan Unilever (HUL) hit a new high of Rs 1,779 intra-day on Monday, before closing 0.73 per cent higher at Rs 1,753.85 on the BSE.

The higher close was in anticipation of a strong performance for the June 2018 quarter (Q1).

The results, which were declared post market hours, undoubtedly suggest that the Street’s expectations have been met. But considering the high stock valuation, experts believe that the stock already factors in a strong performance over the next two years. 

With a 12 per cent underlying domestic volume growth, which came near the upper end of