Hindustan Unilever Ltd. share price target

We consider media insights (link), of HUL looking to acquire the Minimalist brand, as positive. With 100% own capacity and differentiated approach to address skin- and hair-care needs of cohorts, Minimalist has rapidly logged Rs3.5bn in revenue for FY24, with a mid-single-digit margin.

HUL long-term outlook remains positive and with a 18% upside potential from CMP we maintain a BUY rating on the stock.

HUVR's outlook of stable demand trends for FY25 appears conservative as the building blocks for rural demand remain favourable

Hindustan Unilever (HUVR) hosted Capital Market Day-2024 and underlined its business moats and competitive positioning across its categories. The company aimsto remain relevant within India’s large consumption theme.

HUL’s annual investor day highlights its commitment to the future, where growth ahead should outperform (vs market) with enhanced thrust and execution on future opportunities in core and a market-making strategy.

We re-iterate a Buy rating on HUL and keep PT unchanged at Rs. 3,079. Stock has corrected 18% form recent highs and trades at 56x/51x/46x its FY25E/FY26E/FY27E EPS, respectively.

2QFY25 sales were 1% above consensus while EBITDA was 2% higher as margins came in 15bps above expectations