HUL posts strongest growth in 13 quarters as analysts back CEO strategy

Hindustan Unilever shares gained 2% after the consumer goods giant reported a 10% jump in first-quarter revenue to Rs 17,341 crore. Underlying sales growth hit 10%, its strongest quarterly expansion in 13 quarters, driven equally by volume and pricing. Net profit fell 3% year-on-year to Rs 2,673 crore and missed estimates, but the decline was entirely attributable to a one-off tax credit in the prior-year period.

JM Financial upgraded the stock to "Buy" from "Add" with a target price of Rs 2,425, implying a 20% upside. The brokerage credited the new CEO's strategic shifts, noting that sharper portfolio interventions and stronger omnichannel execution are already accelerating sales. It argued that the current inflationary environment could actually benefit HUL by allowing it to capture market share from unorganised and regional competitors.

Elevated raw material costs remain a near-term constraint on margins. Nuvama maintained its "Buy" rating with a target price of Rs 2,820 for a 40% upside, but flagged that inflation in crude-linked inputs, palm oil, and tea continues to limit margin expansion. The firm expects HUL to implement further calibrated price hikes to defend profitability.

Morgan Stanley kept its "Equal Weight" rating and Rs 2,480 target for a 23% upside, pointing to sequentially weaker volume growth as the primary negative. It highlighted double-digit revenue growth and optimistic management commentary as positives. Motilal Oswal retained its "Buy" rating with a slightly trimmed target of Rs 2,500 for a 24% upside, keeping earnings estimates for FY27 and FY28 largely intact.

Management maintained its guidance on demand and margins, asserting that a 15% to 20% rainfall deficit will not meaningfully impact broader consumption. To navigate ongoing price volatility, the company is deploying artificial intelligence across its research, manufacturing, supply chain, and marketing operations to improve execution efficiency.