1 day ago
HUL Shares Hit 52-Week Low Despite Brokerage’s 24% Upside
Hindustan Unilever’s share price fell to its lowest level in a year.
HSBC, a brokerage, still believes the shares could rise by 24%.
However, HSBC says the company’s expected profit growth is slower than the goal it previously announced.
HUL’s profit fell in the latest quarter because raw materials and other expenses became more expensive.
Some costs were also linked to the war in the Middle East.
The company’s sales revenue grew by more than 10%.
HUL’s CEO Priya Nair said demand in India stayed stable.
Investors will watch the company’s 2026 Capital Markets Day for more information about its plans.
Hindustan Unilever shares fell to a 52-week low of Rs 1,983.15, taking its market capitalization to Rs 4.66 lakh crore.
HSBC expects 24% upside in HUL shares but said projected 3-4% PBT CAGR through FY27 is underwhelming.
HUL’s Q1 standalone net profit fell 4% to Rs 2,631 crore from Rs 2,732 crore a year earlier.
Revenue from product sales increased 10.3% to Rs 17,149 crore, described by HUL as its highest in 13 quarters.
HUL’s Capital Markets Day 2026 webcast is scheduled for September 4, 2026, in Mumbai, amid management change and sustained share-price underperformance.
- Who
- Hindustan Unilever Limited, HSBC, and HUL CEO and Managing Director Priya Nair.
- What
- HUL shares hit a 52-week low while HSBC forecast 24% upside and raised concerns about the company’s expected profit growth.
- Where
- The 2026 Capital Markets Day webcast will be held in Mumbai.
- When
- The shares fell in the current trading session; HUL’s latest reported quarter was Q1, and its next Capital Markets Day is scheduled for September 4, 2026.
- Why
- The share-price pressure and profit concerns followed weaker-than-aspired profit growth, higher raw-material costs, increased expenses, and sustained share-price underperformance.
Brokerage concerns
Management and business resilience
Profit-growth outlook
Brokerage concerns
HSBC said HUL’s projected 3-4% PBT CAGR through FY27 is underwhelming compared with the company’s earlier aspiration of double-digit growth.
Management and business resilience
HUL’s reported Q1 product-sales revenue rose 10.3%, and the company described the turnover as its highest in 13 quarters.
Operating pressures
Brokerage concerns
HSBC highlighted sustained share-price underperformance and said the upcoming Capital Markets Day is important amid management change.
Management and business resilience
Priya Nair said the underlying demand environment remained stable despite global geopolitical volatility.
Investment outlook
Brokerage concerns
HUL trades below its short- and long-term moving averages, while its RSI of 31.2 indicates it is near the oversold zone.
Management and business resilience
HSBC nevertheless expects 24% upside in the shares.
Key facts
- Share-price low
- Rs 1,983.15
- Market capitalization
- Rs 4.66 lakh crore
- HSBC upside expectation
- 24%
- Expected PBT CAGR
- 3-4% over FY24-27e
- Q1 standalone net profit
- Rs 2,631 crore, down 4% year-on-year
- Q1 product-sales revenue
- Rs 17,149 crore, up 10.3%
- Capital Markets Day
- September 4, 2026, in Mumbai
Quotes
Priya Nair
Chief executive officer and managing director of Hindustan Unilever
“Despite global geopolitical volatility, the Indian economy demonstrated resilience, supported by proactive fiscal and monetary policy measures. The underlying demand environment remained stable during the quarter.”
businesstoday.in
Sources
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