Mumbai, India – Hindustan Unilever Ltd (HUL) has reported robust fourth-quarter performance, marked by a 6% year-on-year underlying volume growth, the highest in 15 quarters. This significant surge, coupled with a 21% rise in net profit, has led brokerage firm Motilal Oswal to forecast an 18% upside for HUL's stock.
For the March 2026 quarter, HUL’s net profit climbed to Rs 2,994 crore, up from Rs 2,475 crore in the same period last year. Core revenue from operations, primarily driven by product sales, saw an 8.1% increase, reaching Rs 16,172 crore compared to Rs 14,955 crore a year prior.
Factors Driving HUL's Strong Q4 Performance
The impressive Q4 growth is attributed to several strategic initiatives and favorable market conditions. Motilal Oswal highlighted the benefits derived from Goods and Services Tax (GST) implementation, alongside HUL's continuous efforts in transforming its product portfolio and strengthening its omnichannel capabilities. The company remains committed to a volume-led revenue growth strategy, even if it impacts near-term margins.
Motilal Oswal's Optimistic Outlook
Motilal Oswal has reiterated a “BUY” rating on HUL stock, setting a target price of Rs 2650 within a year, representing an 18% rally from current levels. This projection is based on a 50x multiple on the estimated earnings per share (EPS) for March 2028.
HUL has also announced a substantial capital expenditure of Rs 2000 crore, earmarked for premium and high-growth categories. The company expresses optimism about delivering improved performance in FY27 compared to FY26.
Navigating Market Volatility
Despite ongoing concerns regarding rising crude prices and broader macroeconomic volatility, HUL believes it is well-positioned to manage these challenges. The company plans to leverage commodity hedges, accelerate cost-saving initiatives, and continue its portfolio transformation strategies to navigate the dynamic market environment effectively.