Here's why Motilal Oswal recommends buy on HUL with 15% upside

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26 Aug, 2025 12:21

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Hindustan Unilever (HUL) share price added over a percent intraday on June 18 and was the top index gainer.

The FMCG major had given a lackluster performance since the last 3 months, adding 10 percent.

The stock has underperformed its peers since the last 1 year, gaining 18 percent in comparison to Marico which gained 57 percent, Dabur India (30 percent) and Godrej Consumer adding 38 percent in the same period.

Hindustan Unilever reported a 44.8 percent jump in consolidated profit in Q4 to Rs 2,190 crore from Rs 1,512 crore in the year-ago period.

Consolidated revenue from operations climbed 35 percent year-on-year to Rs 12,433 crore in Q4 FY21.

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Brokerage firm Prabhudas Lilladher has a target of Rs 2,562 per share. It expects the FMCG major to emerge stronger post-pandemic on the back of increased operating leverage in the nutrition business and improving demand scenario.

Motilal Oswal has a buy recommendation on the stock with target of Rs 2780 per share, an upside of 15 percent.

According to the brokerage firm, while Q1 FY22 will be impacted by the second COVID wave, the extent will be far lower compared to last year. Rural continues to remain resilient, and demand in health, hygiene, and nutrition categories remains healthy, it said.

"While discretionary demand will be affected, we expect the impact to be lower YoY. EBITDA margin is likely to remain under pressure owing to sequential RM inflation and higher A&P spends," it added.

"From a medium-term perspective, the outlook remains positive. The strong outlook on rural, GSK Consumer synergies, and sustained growth and premiumization in skin cleansing offer further medium-term tailwinds. We maintain our buy rating with a target of Rs 2,780 per share," it added.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.