Shares of Hindustan Unilever (HUL) rose on Wednesday, June 10 as JP Morgan maintained 'overweight' coverage on the stock citing stable demand outlook and organisational restructuring.
HUL share price advanced 2.78% intraday to Rs 2,192 apiece. The scrip was trading 2.48% higher by 9:38 am, while the benchmark Nifty 50 index was 0.45% up.
JP Morgan, in recent note has set a target price of Rs 2,550 on HUL stock, marking a 19.5% upside from its previous closing price of Rs 2,132.8. While retaining 'overwieght' coverage, the brokerage highlighted stable demand outlook reiterated by HUL management, supported by calibrated pricing actions, resilient rural franchise, and urban premiumization that have emerge as a key to growth engine.
In terms of segments, liquids within Home Care & Personal Care, Premium Beauty & Wellbeing brands, and a scaling Foods portfolio remain the principal growth vectors.
According to JP Morgan, HUL's margins are guided within the 22.5–23.5% band for FY27, with pricing, cost efficiencies and overhead optimisation absorbing around 10% input cost inflation. Meanwhile, premiumisation-led gross margin gains are expected to be reinvested into brand building. Additionally, The company's organisational restructuring is aimed at sharper execution across business units, along with a focused omnichannel strategy.
Notably, an improvement in the revenue growth trajectory in coming quarters will be the key share price catalyst for HUL.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.