Hindustan Unilever (HUL) share price plunged over 5% on Thursday, October 24, after the company’s Q2 results disparate Street. HUL shares fall as much as 5.78% to ₹2,504.15 apiece on the BSE.
“We expect maintenance of operating margin on back on cost saving initiatives and higher growth in the premium portfolio. We marginally cut our EPS estimates by 1% for FY25-27E and expect HUL to deliver sales and earnings CAGR of 8% over FY24–27E,” Antique Stock Broking said. The company reported a volume growth of 3%. Moreover, the HUL board also plans to detach its ice cream business by December, based on the recommendation of the Independent Committee.
Motilal Oswal
Despite atony in overall consumption, brokerage firm Motilal Oswal believes HUL can still see an upward growth trajectory. Rural is still performing well, and HUL has relatively higher saliency than rural, it highlighted.
“We cut our EPS estimates by 2% for FY25 and FY26 each as we moderate our growth assumptions amid raw material cost pressure. HUL’s wide product basket and presence across price segments should help the company achieve a steady growth recovery. Under the new leadership of Mr. Rohit Jawa, HUL is expected to take corrective actions to address the white space, particularly in BPC and F&R. The company commands strong leadership in Home Care, which can be capitalized during improving macros,” MOFSL said.
It reiterated a ‘Buy’ rating on Hindustan Unilever shares with a target price of ₹3,200 apiece, based on 60x Sep ’26E EPS, close to the last five-year average P/E.
