CLSA has maintained its underperform rating on Hindustan Unilever (HUL) with a target price of ₹1,966 per share, emphasising that the company’s focus remains on portfolio renovation and volume-led growth amid category-specific divergences.
The brokerage said HUL’s home care segment is seeing traction in liquid detergents but continues to face negative price growth overall. In the beauty and personal care category, skincare remained strong, while personal care volumes declined. The foods portfolio grew 3% year-on-year, with low single-digit underlying volume growth (UVG).
CLSA said while management’s renewed focus on innovation and affordability could aid recovery, competitive intensity remains high, particularly in mass categories where pricing remains sensitive. The firm added that the near-term volume recovery trajectory will depend on sustained rural demand improvement and category innovation.
The brokerage expects HUL’s performance to remain rangebound until meaningful margin expansion or higher pricing power becomes visible.
Disclaimer: The views and recommendations above are those of CLSA. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
