HUL Share Price Jumps 1.5% After First-Quarter Net Profit Rises 11%, Revenue Rises 19%; should you buy, hold or sell?

Hindustan Unilever (HUL) share price jumped 1% on Wednesday after the company reported an 11.06% rise in net profit year on year to Rs 2,289 crore from Rs 2,061 crore at the same quarter last year. The company’s operating revenue jumped 19.48% year-on-year to Rs 14,016 crore. HUL shares were trading at Rs 2,606, up 1.4% on NSE. So far this year, the stock has outperformed the benchmark Nifty index, rising around 10%. Most brokerages remain bullish on equities, seeing up to 18% potential upside going forward thanks to rising urban and out-of-home consumption.

Let’s Talk Stocks: Should You Buy, Hold or Sell HUL Stocks?

Edelweiss: Buy
Target price: Rs 3,050
Up: 18%

Edelweiss Securities analysts are bullish on HUL stock. While GM will be under pressure in the near term, improving portfolio mix, cost control and price increases should help EBITDA margin, they said. The brokerage firm expects HUL to benefit from rising urban and out-of-home consumption. “Given the strong palm oil price correction and some packaging costs, we are increasing FY23/FY24E EPS by 3%/6%,” they said. It maintains the ‘Buy/SO’ rating on the stock with a revised target price of Rs 3,050. The monsoon is now above normal, but a huge deficit in high population states (key markets) is a concern and a key variable to watch, he added.

Motilal Oswal: Buy
Target price: Rs 3,000; Up: 17%

According to analysts at Motilal Oswal Finance Services, HUL continues to place the building blocks for future growth and was able to do so ahead of its peers. “HUVR continues to display the dexterity demonstrated over the past decade, despite its larger size, even as it continues to grow relative to its peers. will be incremental, improving narrative will keep multiples high for FMCG’s flagship company,” they said. The brokerage maintains a “Buy” call on the stock with a target price of 3,000 rupees, implying a 17% rise from Tuesday’s close.

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ICICI titles: add
Target Price: Rs 2,750
Up: 7%

ICICI Securities has raised its earnings estimates by about 3%; revenue modeling / EBITDA / PAT CAGR of 12 / 13 / 13 (%) on FY22-24E. Analysts at the brokerage firm turned more positive on HUL in the last quarter, citing that most concerns about the stock (rural downturn, inflation issues, D2C premiumization challenges) were in the price. It maintains the ‘Add’ rating on the stock with a revised DCF-based target price of Rs 2,750 from Rs 2,450 earlier. “The main downside risks are a delayed recovery in demand, sustained commodity inflation and irrational competition,” he said.

Yes Titles: Neutral
Target Price: Rs 2,624; Up: 2.2%

According to analysts at Yes Securities, HUL performed better than expected with volume growth of 6%, while the overall market saw a low single-digit volume decline. “While price increases calibrated at around 12% translated into revenue growth of 19%, inflation of 20% negatively impacted margins. Volume growth was weak for the rural market for three quarters now, but well ahead of industry growth which fell into high single digits,” they said. The brokerage downgraded the stock from ADD rating to Neutral with a revised target price of Rs 2,624 based on 50x 24th year earnings.

(The stock recommendations in this story are from the respective research analysts and brokerage firms. FinancialExpress.com takes no responsibility for their investment advice. Investments in the capital markets are subject to rules and regulations. Please consult your investment advisor before investing.)

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