Update shared on 01 Nov 2025
Fair value Increased 0.75%Analysts have raised their price target for Hindustan Unilever from ₹2,751 to ₹2,772. They cite stronger anticipated revenue growth and a slight reduction in the discount rate as key factors supporting the revised fair value.
Analyst Commentary
Analysts have provided additional insights on Hindustan Unilever's outlook following the recent price target revision.
Bullish Takeaways- Bullish analysts expect improved revenue growth, supported by robust demand and innovative product launches in core categories.
- The modest reduction in the discount rate reflects a more favorable macroeconomic environment. This is expected to bolster the company's valuation.
- Cost management initiatives and operating leverage are seen as drivers for potential margin expansion in the coming quarters.
- Analysts highlight Hindustan Unilever's strong brand equity and widespread distribution network as key advantages for sustained market leadership.
- Some analysts remain cautious about the impact of volatile input costs, which may pressure margins despite efficiency measures.
- Heightened competition within the consumer staples sector could challenge the company's pricing power and market share.
- Any slowdown in rural demand or broader economic uncertainty could dampen the pace of revenue growth and weigh on near-term performance.
What's in the News
- The Board of Hindustan Unilever is scheduled to meet on October 23, 2025, to review financial results for the quarter and half year ended September 30, 2025, and to consider the proposal for an interim dividend for the financial year ending March 31, 2026. (Board Meeting)
- Wellbeing Nutrition, a company backed by Hindustan Unilever and Fireside Ventures, is up for sale with strategic buyers from among top pharma and FMCG companies likely to bid. HUL may also consider an exit, depending on the offers received. (M&A Rumors and Discussions)
- CFO Ritesh Tiwari will step down effective October 31, 2025, to take up a global role as Head of M&A and Treasury at Unilever Plc in London. Mr. Niranjan Gupta is set to become the new CFO starting September 1, 2025. (Executive Changes: CFO)
- The demerger and forthcoming listing of the Kwality Walls (India) Limited ice cream business is being processed, with shareholders set to receive a 1:1 share entitlement. The process aims to complete by the fourth quarter of FY26. (Seeking Financing/Partners)
- A Special/Extraordinary Shareholders Meeting is set for September 27, 2025, via postal ballot in India. (Shareholders Meeting)
Valuation Changes
- Consensus Analyst Price Target: Increased from ₹2,751 to ₹2,772, reflecting a modest upward revision in fair value.
- Discount Rate: Reduced slightly from 14.01% to 13.92% as analysts factor in a more favorable risk environment.
- Revenue Growth: Projected rate has risen from 7.99% to 9.32%, suggesting improved expectations for sales expansion.
- Net Profit Margin: Margins are forecast to decrease slightly, from 16.95% to 16.78%, indicating a marginally lower profitability expectation.
- Future P/E: The anticipated price-to-earnings ratio has fallen moderately from 70.18x to 68.36x, indicating some moderation in valuation multiples.
Disclaimer
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