HUL Share Price Update: 75% of Analysts Maintain Bullish Outlook on FMCG Leader
As investors responded to the firm’s September quarter results, which were released after market hours on Thursday, shares of Hindustan Unilever Ltd. (HUL), the biggest fast-moving consumer goods (FMCG) business in India, started 3% down on Friday, October 24.
Although some have lowered their price targets, the majority of brokerage companies have kept their ratings on the company after the Q2 results. Despite short-term margin pressure and a slower-than-expected recovery, Goldman Sachs continued to maintain its ‘Buy’ rating despite lowering its price target from 2,900 to 2,850.
According to the brokerage, challenges associated with the Goods and Services Tax (GST) transition had an effect on volume growth in Q2. Although at a slower rate than initially predicted, it anticipates a sluggish rebound in the second half of the year.
Driving volume-led revenue growth continues to be the company’s primary objective, as the new CEO has emphasized.
Macquarie’s price objective is 3,000, and it has a ‘Outperform’ rating on HUL. According to the international brokerage, the 200 basis point impact from the GST transition should reverse, resulting in sales growth above the 4% observed in the first half of FY26. It also predicted a gradual rebound in demand in the second half of the fiscal year (H2FY26). Despite a Q2 earnings beat, HUL has maintained its EBITDA margin target of 22-23% for FY26 and anticipates a 50-60 basis point margin boost from the impending demerger of the ice cream business, according to Macquarie. The firm also noted that the company’s emphasis on volume expansion and premiumization is in line with strengthening market circumstances.
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