This leading FMCG player, known for its dominant market position and diverse consumer portfolio, is highlighted for a positive outlook. A major brokerage maintains a strong ‘buy’ recommendation, citing an expected growth rebound later this fiscal year. The rationale includes sustained valuations, portfolio improvements driving earnings, and robust long-term profit momentum, suggesting significant upside potential.
Hindustan Unilever Limited’s stock, with a market capitalisation of Rs. 5,62,398 crores, rose to Rs. 2,396.50, hitting a high of up to 2.4 percent from its previous closing price of Rs. 2,339.30. However, the stock over the past year has given a negative return of 7.5 percent.
UBS Views On HUL
UBS has maintained a ‘buy’ rating on Hindustan Unilever (HUL) with a target price of Rs 2,800, implying a potential upside of nearly 20%. The brokerage believes HUL’s large scale and strong market position give it an edge, but parts of its product portfolio need improvement. UBS expects the company’s growth to pick up meaningfully in the second half of the year, which should support its valuation. Looking further ahead, strong earnings growth could continue into FY27, making the overall risk-reward outlook increasingly favourable.
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Q4 Company Financials
The company reported revenue of Rs. 15,670 crore in Q4FY25, a growth of 3 percent YoY from Rs. 15,210 crore in Q4FY24 but a marginal decline of 1 percent QoQ from Rs. 15,818 crore in Q3FY25. Over the last three years, revenue has grown at a CAGR of 6 percent, reflecting steady business expansion.
Net profit for Q4FY25 stood at Rs. 2,475 crore, down 3 percent YoY from Rs. 2,561 crore and down 17 percent QoQ from Rs. 2,989 crore, indicating some margin pressure. However, profit has grown at a 5 percent CAGR over three years, supported by strong operational performance. The company’s return on equity (ROE) has improved significantly, posting a 3-year CAGR of 20 percent, highlighting better capital efficiency.
Written By Fazal Ul Vahab C H
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