Nuvama has reaffirmed its ‘Buy’ rating on Hindustan Unilever (HUL) with a target price of ₹3,225, implying an upside potential of 37.8% from the current market price of ₹2,340.00.
The brokerage noted that while volume growth was below expectations, overall performance was in line. HUL’s acquisition of Minimalist at 6x EV/sales was deemed fair, as the acquisition aligns strategically, offering profitability and complementarity to its existing portfolio. Pricing turned positive for the first time in many quarters, up by 2%, despite current raw material inflation leading to cuts in FY25/26/27 EPS estimates by 3%, 5%, and 5%, respectively.
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