Shares of Hindustan Unilever Ltd (HUL) surged nearly 4% on August 1 to ₹2,621.10 after global brokerage Goldman Sachs upgraded the stock to a “buy” from “neutral” and sharply raised its target price to ₹2,900 from ₹2,400. This marks the brokerage’s first “buy” rating on HUL since initiating coverage in 2022.
The upgrade came a day after HUL announced its June quarter results, which Goldman Sachs noted reflected an earnings turnaround driven by improving macroeconomic conditions and company-led initiatives. The brokerage expects HUL’s revenue growth to pick up to high single digits in the second half of FY26 and into FY27.
According to the note, stronger revenue will also fuel margin expansion, supported by operating leverage and more efficient advertising spends. EPS growth is now forecast to accelerate into double digits for FY26–FY28, a significant improvement from the low-single-digit CAGR between FY23 and FY26.
However, Goldman Sachs flagged risks including a sharp rise in input costs and further deterioration in the consumption environment.
Currently, out of 43 analysts covering HUL, 29 have a “buy” call, 11 recommend “hold”, and three suggest a “sell”.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult with a certified financial advisor before making any investment decisions.
