HUL’s Strategic Reset Under Rohit Jawa Sets The Stage For Long-Term Growth Says ICICI Securities; Retains Add

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ICICI Securities Report

We model revenue/Ebitda/PAT CAGRs of 7/8/8 (%) over FY25–27E. Maintain Add on Hindustan Unilever Ltd. with an unchanged DCF-based target price of Rs 2,850.

Key downside risks are delayed recovery in demand, and irrational competition.

Key upside risks are betterthan-expected recovery in rural demand and reduction in competitive intensity.

Rohit Jawa took the helm as HUL’s CEO in Jun’23 – a particularly tempestuous time for the FMCG industry. At the time, the industry was mired with high food inflation, volatile raw material prices, intense competition and slower demand in both rural and urban markets.

Under his stewardship, HUL navigated these choppy waters by keenly focusing (ASPIRE strategy) on premium products, sharpening its portfolio, strengthening its D2C presence, and upgrading its manufacturing and distribution systems.

The launch of STRATOS technology in soaps was a bold move in a tough, price-sensitive market. In parallel, HUL expanded its premium portfolio via liquids, accelerated digital initiatives, targeted specific sales channels (under WIMI 2.0) and improved its supply chain; thus, gaining agility and resilience.

Early signs are encouraging (margin/market share protection), but scaling up remains the imperative. Even though difficult market conditions limited short-term growth, Rohit has laid a solid foundation in core and new categories, sustainability, and digital. Now, the responsibility shifts to his successor, Priya Nair, to turn these strategic moves into consistent volume growth and accelerated TSR.

We maintain Add with an unchanged target price of Rs 2,850.

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