Hindustan Unilever posted an 8 percent increase in its standalone net profit to Rs 2472 crore in the April to June quarter as compared with the same period a year ago. However, the net profit numbers missed average analyst estimates by 4 percent. Total revenue of the company increased 6.4 percent to Rs 15,333 crore year-on-year in Q1FY24 but missed average analyst estimates by 0.9 percent.
The stock was down 2.8 percent at Rs 2647.20 at 9.16 am on the NSE.
Jefferies has downgraded the stock to a hold rating. The target price is cut to Rs 2700 from Rs 2875. The brokerage firm said that volumes were at a five-quarter low as food segment sales remained weak in Q1FY24. It further said that volume growth will be gradual for HUL, and outlook is cautious as recovery will take time due to macro-headwinds.
Morgan Stanley maintained an equal-weight rating on the stock with a target price of Rs 2408. The brokerage firm said that HUL faces headwinds from weak volume growth, lower pricing strategy, and media investments. The firm further said that there would be gradual recovery in consumer demand over the next two-to-three quarters.
HSBC has a buy rating on the stock with a target price of Rs 2950. The brokerage firm said that Q1FY24 volumes were low on account of channel destocking and expanding advertising and promotional spends.
JP Morgan has an overweight call on the stock with a target price of Rs 2850. The brokerage firm said that HUL is positive on quarter-on-quarter improving trends.
Revenues from the homecare division grew the most at 10 percent year-on-year in the April to June quarter. Beauty and Personal care segment revenue grew by 4.4 percent year-on-year in Q1FY24. Revenue from Food and Refreshments grew 4.6 percent in April to June quarter as compared to the same period a year ago.
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