Hindustan Unilever Share Price: Hindustan Unilever Ltd (HUL), one of India’s leading FMCG companies, witnessed a significant decline in its share price, falling nearly 6% today following the announcement of its Q2 results. The stock hit a low of ₹2,504.15 on the BSE and ₹2,503.25 on the NSE, making it one of the biggest laggards among Sensex and Nifty firms.
For the quarter ending September 2024, HUL reported a 2.33% decrease in consolidated net profit, totaling ₹2,595 crore, down from ₹2,657 crore during the same period last year. This disappointing performance was attributed to moderate demand in urban markets, impacting overall growth and investor sentiment.
Despite a 2% increase in revenue from operations, which reached ₹15,319 crore, both the profit and revenue figures fell short of analyst expectations. The reported PAT and revenue were below the ETNOW poll estimates of ₹2,657 crore and ₹15,792 crore, respectively.
Analyst Reactions
Analysts have responded with a mixed outlook on HUL’s stock. Here are key takeaways from recent brokerage assessments:
Investec has maintained a Hold rating with a target price increase to ₹2,837, citing weaker-than-expected growth trends and lack of margin expansion.
Nuvama remains optimistic, maintaining a Buy rating and raising the target price to ₹3,395, noting expectations of a recovery in rural markets and pricing growth.
Motilal Oswal and HDFC Securities have also given a Buy recommendation, with target prices set at ₹3,200, citing HUL’s diverse product range and potential for steady recovery.
The mixed sentiment from analysts highlights the ongoing challenges HUL faces in improving volume growth amid rising competition and raw material cost pressures.
Market Impact
The decline in HUL’s stock comes amidst a broader sell-off in the equity markets, driven by foreign capital outflows and concerns regarding the company’s earnings. As of noon trading, HUL shares were down nearly 7%, reflecting investor uncertainty in light of disappointing financial results.
Hindustan Unilever’s latest quarterly results reveal significant challenges, with a decline in net profit and moderate growth in revenue. Investors are advised to closely monitor market trends and analyst recommendations as they consider their positions in HUL shares. Given the company’s strong brand portfolio and potential recovery in rural markets, HUL remains a key player in the FMCG sector, albeit facing immediate headwinds.
Disclaimer: This article is for informational purposes only. Please consult a financial advisor for personalized investment advice.
