Hindustan Unilever Limited (NSE:HINDUNILVR) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

The yearly results for Hindustan Unilever Limited (NSE:HINDUNILVR) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of ₹619b and statutory earnings per share of ₹43.74 both in line with analyst estimates, showing that Hindustan Unilever is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Hindustan Unilever

After the latest results, the 23 analysts covering Hindustan Unilever are now predicting revenues of ₹641.1b in 2025. If met, this would reflect an okay 3.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.1% to ₹46.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹672.7b and earnings per share (EPS) of ₹49.66 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the ₹2,593 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Hindustan Unilever, with the most bullish analyst valuing it at ₹3,102 and the most bearish at ₹2,190 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Hindustan Unilever's revenue growth is expected to slow, with the forecast 3.6% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hindustan Unilever is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Hindustan Unilever. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hindustan Unilever going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Hindustan Unilever you should know about.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.