Buy Hindustan Unilever; target of Rs 2820: Geojit Financial Services

Geojit Financial Services is bullish on Hindustan Unilever has recommended buy rating on the stock with a target price of Rs 2820 in its research report dated November 05, 2024.

Broker Research

November 06, 2024 / 13:04 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Geojit Financial Services research report on Hindustan Unilever

Hindustan Unilever (HUL), a subsidiary of Unilever PLC, is India’s leading FMCG company. It has over 35 brands across 20 categories, such as soaps, detergents, shampoos, and skin care. In Q2FY25, HUL reported a revenue growth of 1.5% YoY, mainly due to growth in the home care segment, while beauty & personal care and foods & refreshment segments declined. The home care segment revenue grew 8.0% YoY due to higher volume in the fabric wash portfolio, driven by premiumisation and market development. Such a trend is expected to continue in the future also. Premium dishwash portfolio also led to good volume growth in Household care. The beauty & personal care segment declined 1.3% YoY to Rs. 5,735cr, mainly on account of pricing action in the skin cleansing portfolio during the year. Higher input costs led to EBITDA declining 1.3% YoY to Rs. 3,647cr. EBITDA margin declined 70bps YoY to 23.5% YoY. Resultantly, adjusted PAT declined 3.5% YoY to Rs. 2, 628cr in Q2FY25. Due to the persistent nature of inflation in input commodity prices, the company expects low-single-digit price growth in the near future.

Outlook

Hence, we maintain our BUY rating on stock with a revised target price of Rs. 2,820 based on 56x FY26E adjusted EPS.

For all recommendations report, click here