Shares of Hindustan Unilever Limited (HUL) rose nearly 2% on Monday, reaching a high of ₹2,389.40 during intraday trade. The stock opened at ₹2,344.80, higher than the previous closing price of ₹2,339.80.
The shares gained in anticipation of the Q1 results for the current financial year, which are set to be announced soon.
This upward movement follows a steady gain of 3.67% in the last five trading sessions. However, over a longer time frame, the stock remains down 7.97% over the past year.
Positive Brokerage Outlook
One major domestic brokerage maintained a positive outlook on HUL, giving the stock a ‘Buy’ rating with a target price of ₹3,055. At the time of the report, HUL was trading around ₹2,282.70, indicating a potential upside of over 30%.
The brokerage expects the fast-moving consumer goods (FMCG) company to report 3–4% year-on-year volume growth in the first quarter of FY26—an improvement from the 2% volume growth posted in Q4 FY25.
It also highlighted improvements in HUL’s financial metrics:
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Return on Equity (RoE): 20.5% in FY25, up from 20.2% in FY24
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Return on Capital Employed (RoCE): 28.7%, up from 27.9%
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Working capital cycle: Improved from -54 days in FY24 to -60 days in FY25
Additionally, 200 basis points of HUL’s product portfolio shifted towards Future Core and Market Makers segments in FY25—a strategic move seen as a positive for long-term growth.
International Perspective
A global brokerage also retained its ‘Buy’ rating on HUL with a target of ₹2,800. The firm views HUL’s stock as offering an attractive risk-reward opportunity, particularly if the company demonstrates stronger performance in the second half of the fiscal year.
The firm emphasized HUL’s robust long-term fundamentals, wide distribution network, and market presence. However, it noted that some areas of the portfolio still require improvement. If addressed, this could set the stage for continued earnings growth into FY27.
Investor Takeaway
While the stock has shown signs of a short-term rebound, it still trades below its 52-week high. Analysts remain optimistic about HUL’s outlook, supported by:
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Anticipated volume growth
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Expanding margins
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Strategic changes in its product mix
Investors are advised to monitor the upcoming earnings report closely. Key factors to watch include rural demand trends, cost efficiency, and topline growth. For those seeking a stable FMCG stock with strong fundamentals and long-term growth potential, HUL continues to be a stock worth considering.
