Buy Hindustan Unilever; target of Rs 2675: Emkay Global Financial

Buy

Emkay Global Financial's research report on Hindustan Unilever

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. Minimalist targets revenue of Rs10bn and mid-teens margin in coming 3 years, with 1/3rd of this revenue from international markets. If the deal with HUL materializes, we see it as a win-win for both, with Minimalist charting scale-up by leveraging HUL’s offline distribution; similarly, HUL would gain access to a digital savvy cohortbase, R&D know-how, and manufacturing capability. (Detailed insights on Minimalist in our Corner office view: 1x1 with Mohit Yadav - Founder, Minimalist.) HUL is one of our select sector preferences, basis execution ability.

Outlook

We see a synergistic opportunity, with the brand gaining access to HUL’s specialized distribution network, and HUL leveraging brand insights to connect better with cohorts.

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Hindustan Unilever - 09012025 - emkay