Buy Hindustan Unilever Ltd For Target Rs. 3,050 by Motilal Oswal Financial Services Ltd

* HUL indicated that while ~40% of its portfolio will benefit from a reduced GST rate, the transition has created shortterm disruptions that will weigh on its 2Q performance.
* HUL expects consolidated business growth to be near flat to low-single digits. We expect 2% revenue growth, backed by 2.5% volume growth.
* GP margins expected to fall 90bp YoY to 50.7% due to increase in consumer offers and other schemes at distributor level. We model 140bp contraction in EBITDA margin to 22.4%.
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