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Analysts Cheer HUL's Results, Reiterate Buy Ratings
Hindustan Unilever Ltd (HUL) shares jumped 3% intra-day after the consumer goods giant reported strong quarterly results. Analysts at Nomura and Motilal Oswal reaffirmed 'Buy' recommendations, signaling confidence with a shared target price of ₹2,650, implying an 18% upside. Nomura noted HUL's consolidated sales grew 7% and volume 6% year-over-year, exceeding its estimates. This performance was driven by strong market initiatives, increased marketing for core brands, and improved online sales strategies. Nomura expects to include Minimalist and OZiva acquisitions from FY26, predicting EPS growth of 9.5% annually from FY26 to FY28.
Company Focuses on Volume-Led Growth
Motilal Oswal agreed, highlighting HUL's strong focus on increasing sales volume. The firm pointed to new product launches across categories and channels, along with the company's 'Unified India' strategy to speed up decision-making. Motilal Oswal noted this volume push might affect short-term profits but expects HUL to manage price swings and economic shifts through hedging, cost cuts, and business changes.
Strong Q4 Financials and Dividend Payout
The company reported a Q4FY26 net profit of ₹2,992 crore, up 21.4% from ₹2,464 crore a year ago. Revenue grew 7.6% year-over-year to ₹16,351 crore. The board proposed a final dividend of ₹22 per share, adding to the ₹19 interim dividend already declared. EBITDA increased 3.2% to ₹3,877 crore, with margins improving 70 basis points to 23.7%.
Stock Trend Signals Potential Turnaround
Despite declining 5.6% and 1.7% over the past six months and year respectively, the recent earnings and analyst outlook suggest a possible turnaround. The stock has gained 11% in the past month.