HUL new royalty payment still lower than Nestle, Colgate

HUL had on Thursday said it would raise royalty by 80 basis points to 3.45 per cent of turnover from 2.65 per cent in FY22 in a staggered manner over a period of 3 years.
Hindustan Unilever's (HUL) December quarter results were ahead of analyst estimates, but the hike in royalty payments was a slight negative. That said, even at 3.45 per cent royalty by 2027, HUL's royalty payment will be lower than that of Nestle India, Colgate-Palmolive and Procter & Gamble Hygiene & Health Care, analysts said, who have either maintained or slightly increased their price targets for the stock post the quarterly results.   

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