Motilal Oswal Recommends Buying Hindustan Unilever, Sets Target Price at Rs 2650
Hindustan Unilever Reports 8% Consolidated Revenue Growth
Hindustan Unilever (HUVR) has released its latest consolidated financial results, showcasing an 8% revenue growth (adjusted for the ice-cream demerger) at INR162.1 billion (est. INR159.6 billion). This growth was largely driven by underlying volume growth of 6% year-over-year (YoY), marking a 15-quarter high. The company's efforts to transform its product portfolio and channels have been instrumental in achieving this growth, which was also aided by the benefits of the Goods and Services Tax (GST).
Key Highlights
| Category | QoQ Growth | YoY Growth |
|---|---|---|
| Underlying Volume Growth | - | 6% |
| Consolidated Revenue Growth (adjusted for ice-cream demerger) | - | 8% |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
The company's management highlighted that there was no significant trade channel pre-buying ahead of the recent price hikes (2-5%) undertaken during March-April. This suggests that the company's pricing strategy has been effective in driving revenue growth.
Outlook and Recommendations
Hindustan Unilever has announced a significant INR20 billion capital expenditure (capex) plan focused on premium and high-growth categories. The company remains optimistic about delivering better performance in FY27 compared to FY26. Motilal Oswal's research team reiterates its BUY rating on the stock with a target price of INR2,650 (50x on Mar'28E EPS).
Investor Takeaway
Investors should consider buying Hindustan Unilever stock with a target price of Rs 2650.
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