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Motilal Oswal Report
Domestic brokerage firm Motilal Oswal has reiterated its Buy rating on the FMCG major Hindustan Unilever Ltd. with a target price of Rs 2,400. based on 40 times on Sep'28E earnings per share, implying a potential upside of 22% from the reports CMP of Rs 1,974.
At HUL's analyst meet, management presented its "Winning in New India" (WINI) strategy, positioning the portfolio to address fast changing consumer preferences (particularly among the youth).
Motilal Oswal highlighted that HUL is gearing up well for growth acceleration, undergoing five reset actions comprising-
- SASSY (scientific, aesthesis, sensorial, said by others, youthful) brand transformation framework,
- sharper resource allocation behind fewer bigger bets,
- acceleration of selected growth pockets,
- a dedicated Quick Commerce organization, and
- a unified India operating model.
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While turnover doubled, Ebitda surged three times and operating cash flow jumped 4x between FY14 and FY24 (including the Ice Cream & GSK acquisitions). However, turnover was broadly flat between FY24 and FY26 (ex-Ice Cream), providing the backdrop for the current reset. Underlying sales growth has improved sequentially over the last few quarters.
According to the brokerage, HUL continues to focus on driving volume-led revenue growth. Despite concerns around rising crude prices and macro volatility, HUL believes it is well positioned to navigate the environment through commodity hedges, accelerated cost-saving initiatives, portfolio transformation strategies, and stronger omnichannel capabilities.
Management remains optimistic about delivering better performance in FY27 vs FY26.
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