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HUL Capital Markets Day Withholds FY27 Guidance, Analysts Set Targets
Hindustan Unilever held an event to explain its plans for future growth.
The company did not give a new growth forecast for FY27.
It also withdrew an earlier forecast.
Analysts said the company wants to grow by encouraging people to use more products, attracting more shoppers, and entering new product areas.
Nomura said these plans could support strong growth, but their success depends on execution and consumer acceptance.
Motilal Oswal said HUL had turnover of Rs 63,800 crore in FY26.
It also said 21 HUL brands each generated more than Rs 1,000 crore.
Several brokerages still recommended buying the stock and published target prices above its referenced market price.
Hindustan Unilever did not share FY27 growth guidance and withdrew its earlier guidance, according to Nomura.
Nomura said HUL’s growth strategy targets 40% from higher consumption, 40% from market-making, and 20% from new categories and formats.
Nomura recommended Buy with a Rs 2,450 target, while Antique Stock Broking set a Rs 2,214 target.
Motilal Oswal said HUL recorded Rs 63,800 crore in FY26 turnover, with 21 brands exceeding Rs 1,000 crore in sales.
Motilal Oswal said HUL expects better FY27 performance and retained its Buy rating with a Rs 2,400 target.
- Who
- Hindustan Unilever and the brokerages Nomura, Antique Stock Broking, and Motilal Oswal Financial Services.
- What
- HUL outlined its growth strategy but did not provide FY27 guidance, while analysts issued Buy ratings and target prices.
- Where
- When
- At HUL’s Capital Markets Day; the article discusses FY26 results and FY27 expectations.
- Why
- HUL said its growth plans depend on increased consumption, market-making, portfolio expansion, and execution; it did not provide guidance amid uncertainty over execution, consumer acceptance, and the time needed to improve growth.
Analyst optimism
Execution concerns
Growth prospects
Analyst optimism
Nomura and Motilal Oswal expect HUL to deliver better performance in FY27 than in FY26 and retained Buy recommendations.
Execution concerns
Nomura said the impact of the strategy depends on execution, consumer acceptance, and the time required to improve growth.
Business resilience
Analyst optimism
Motilal Oswal said HUL is positioned to manage commodity and macroeconomic pressures through hedging, cost savings, portfolio changes, and stronger omnichannel capabilities.
Execution concerns
The company did not provide FY27 guidance and withdrew its earlier guidance, leaving the timing and scale of growth less certain.
Key facts
- FY26 turnover
- Rs 63,800 crore, according to Motilal Oswal Financial Services.
- FY27 guidance
- No new guidance was shared, and previously stated guidance was withdrawn.
- Growth strategy
- 40% from increased consumption, 40% from market-making, and 20% from new whitespaces and formats, according to Nomura.
- Large brands
- 21 brands surpassed Rs 1,000 crore in sales.
- Distribution
- More than 8,500 crore packs are sold annually and reach 90 lakh outlets.
- Household reach
- One or more HUL brands are used by 9 out of 10 Indian households.
- Analyst targets
- Nomura: Rs 2,450; Antique Stock Broking: Rs 2,214; Motilal Oswal: Rs 2,400.
Quotes
Nomura
Brokerage that assessed HUL’s management approach and growth strategy
“The management remains optimistic about delivering better performance in FY27 vs FY26. We reiterate our BUY rating on the stock with a TP of INR2,400 (based on 40x on Sep’28E EPS)”
businesstoday.in
“We view her approach and solutions to the actual challenges faced in the past as more pragmatic.”
businesstoday.in
Sources
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