UBS has retained its ‘Neutral’ rating on Hindustan Unilever Limited (HUL), with a revised target price of ₹2,700, reflecting a potential upside of 15% from the current market price of ₹2,340.00.
The brokerage noted that HUL continues to face lackluster performance, driven by a weak product mix that has impacted volume growth. While volume growth in the home care segment remains steady, price hikes have weighed on the personal care category. UBS expects near-term demand to stay subdued, citing ongoing macroeconomic challenges.
Management has guided for low single-digit price growth and EBITDA margins in the lower range of 23-24%, suggesting a cautious outlook for the upcoming quarters.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
