Considering demonetization, Hindustan Unilever (HUL)’s performance was
healthy both on the top-line and bottom-line front during the quarter. The
company’s top-line grew flat yoy to `7,706cr, while the reported PAT grew by
~7% yoy to 1,038cr. 

We expect HUL to post ~8% and ~10% CAGR in its
top-line and bottom-line, respectively, over FY2016-18E. At the current market
price, the stock is trading at 38.7x its FY2018E earnings. We maintain our
Neutral view on the stock.