Hindustan Unilever Ltd. share price target

Hindustan Unilever’s (HUVR) 1QFY25 performance was in line with our estimates. Net sales rose 2% YoY, with 4% volume growth (est. 3%).

HUL’s Q1FY2025 performance was in line with expectations with revenues and PAT growing by 1.3% and 3% y-o-y, respectively; underlying volume growth came in at 4%.

We maintain a Buy on Hindustan Unilever Limited (HUL) with an unchanged PT of Rs. 2,725. Likely revival in rural India and its underperformance versus broader indices makes HUL a preferred pick in the consumer goods space. Stock trades at 53x and 47x its FY25E and FY26E EPS, respectively

Hindustan Unilever’s (HUVR) FY24 annual report provides insights about its key focus areas to build upon its sustainable growth model

MSIL: Steady performance, but steep valuations; downgrade to HOLD. HUVR: Subdued performance; expect gradual recovery. BAF: Obstacles for a powerful player on a protracted journey. SBILIFE: Expect market dominance to continue. SI: In-line Q4FY24; pipe volume guided to grow at healthy rate in FY25. DALBHARA: Disappointments all over; but paving the way for growth. UTIAM: Core profit in line; maintain HOLD. GLS: Weak quarter; maintain HOLD

It's surprising that organisational learning missed in just 15 years (HUL had volume decline of 4.2% in MQ'2009 thanks to delay in price cuts in Detergents). It's history repeating and not just rhyming.

Recommendation With an 11% upside from the CMP, we maintain our long-term BUY rating on the stock.