Buy Hindustan Unilever; target of Rs 3000: Motilal Oswal

Motilal Oswal is bullish on Hindustan Unilever has recommended buy rating on the stock with a target price of Rs 3000 in its research report dated July 31, 2025.

Broker Research

August 04, 2025 / 13:23 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Hindustan Unilever

Hindustan Unilever’s (HUVR) 1QFY26 consolidated revenue was up 5% at INR165.1b (in line), with underlying volume growth (UVG) of 4% (est. 3% and 2% in 4QFY25), led by a steady recovery in rural markets (~1/3 of portfolio) and a gradual improvement in urban demand. Growth improvement reflects positive outcomes of HUVR’s recent growth aspiration initiatives. Home Care delivered high-single-digit volume growth, while revenue was up only 2% YoY. There was an adverse pricing impact as HUVR maintained a competitive price-value equation and passed on lower commodity costs to consumers. EBIT margin was down 50bp but up 70bp QoQ YoY at 19.5%.

Outlook

We believe the new CEO can further capitalize on the volume drive with her understanding of Indian consumers and the company’s execution playbook. We have a BUY rating on the stock with a TP of INR3,000 (55x Jun’27E EPS).

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