HUL Share Price: Shares of FMCG sector company Hindustan Unilever fell by 4 percent in early trade on Thursday (January 23). The company’s shares have fallen today after releasing its third quarter results a day earlier. After the results, brokerage houses have released investment strategy on HUL Bank.
Brokerage companies have given mixed ratings to the stock and changed their long term target price. Brokerages say that the stock may have an upside of up to 38% in the long term. Hindustan Unilever Limited’s profit increased by 19.18 percent to Rs 2,989 crore in the December quarter of the current financial year. It was Rs 2508 crore in the same quarter of the last financial year.
Brokerage firm Nuvama has maintained its ‘BUY’ rating on Hindustan Unilever. However, the brokerage has reduced its target price on the stock to Rs 3225. Earlier it was Rs 3,395. In this way, the share can show an upside of 38% in the long term from the previous closing price (January 22).
According to the brokerage, HUL’s December quarter results were in line with expectations with revenue/EBIDTA growing 1.4% and 0.8% respectively year-on-year. After several quarters the price turned positive at 2%. Home Care/Beauty & Wellbeing grew 6%-1% YoY, while Personal Care declined 4% YoY. Food items remained stable. However, the skin care portfolio grew in mid-single digits.
Brokerage Firm Antique Stock Broking has maintained its ‘Hold’ rating on Hindustan Unilever. However, the brokerage has reduced its target price on the stock to Rs 2300. Earlier it was Rs 2666. Brokerage says demand remains soft. Profitability may remain limited in the near term due to commodity value inflation and higher investments on brands to capture market share and drive volume growth.
Brokerage Firm Motilal Oswal has also given Bullish rating on Hindustan Unilever and ‘BUY’ rating on the stock. Also, a target price of Rs 2850 has been kept on the stock. In this way, the stock can give an upside return of 22% in the long term from Wednesday’s closing price.
Motilal Oswal said HUL’s December quarter revenue grew 1.9% to Rs 15,559 crore. However, demand recovery continues to be delayed. This has put pressure on urban consumption. Higher share of LUP has further impacted the mix of underlying volume growth (UVG).
Brokerage firm MK Global Financial Services has also maintained BUY rating on HUL. Also, a target price of Rs 2,675 has been kept on the stock. In this way, the stock can give an upside of 14% in the long term compared to Wednesday’s closing price. The brokerage has reiterated its positive stance on HUL despite poor financial performance and a weak near-term outlook.
HUL shares fell up to 4% in early trade on Thursday after releasing its third quarter results. However, later there was a good recovery in the stock. At 1 pm the shares were trading at Rs 2321, down Rs 21.95 or 0.94%. Talking about the performance of the stock, its performance has been almost flat in the last one month. At the same time, the stock has fallen 12.29% in the last 3 months. Whereas in the last one year the performance of the stock has remained almost flat. The 52 week high of the share is Rs 3,034 while the 52 week low is Rs 2,170. The total market cap of the stock on BSE is Rs 5,47,795 crore.
The consolidated net profit of Hindustan Unilever Limited, a daily goods manufacturing company, increased by 19.18 percent to Rs 2,989 crore in the December quarter of the current financial year. Hindustan Unilever Limited (HUL) said in a stock exchange information on Wednesday that the company’s consolidated profit in the same quarter of the last financial year was Rs 2,508 crore. The company’s consolidated total income in the October-December 2024 quarter stood at Rs 16,050 crore as compared to Rs 15,781 crore in the same quarter of the last financial year. The company’s total expenses increased to Rs 12,576 crore in the December quarter compared to Rs 12,305 crore in the same quarter of the last financial year.
Profit before exceptional items and tax remained flat at Rs 3,475 crore in the December quarter of FY25. However, extraordinary income of Rs 507 crore in the quarter, compared to extraordinary loss of Rs 30 crore in the year-ago period, boosted net profit. Its net profit stood at Rs 2,998 crore in the quarter ended December, compared with Rs 2,501 crore in the year-ago period, while its underlying volume growth remained flat in the quarter. The FMCG major’s revenue rose 1.6 per cent year-on-year to Rs 15,818 crore.
(Disclaimer: The advice to buy shares here has been given by the brokerage. Investing in the market is subject to risks. Consult your advisor before taking any investment decision.)