Jefferies has reiterated its buy rating on Hindustan Unilever Ltd (HUL) with a target price of ₹3,000, acknowledging near-term weakness from GST-driven destocking but maintaining confidence in the company’s long-term prospects.
The brokerage noted that GST cuts, while positive for affordability and consumption in the long run, are causing short-term disruptions as trade clears older stock. This has led to pantry purchase delays, which are expected to hurt September offtakes.
As a result, Jefferies expects Q2FY26 revenue growth to be flat to low single digits, with October sales also soft. However, it anticipates a recovery starting in November as prices stabilise. The brokerage added that similar trends are likely across the FMCG sector in Q2FY26, but HUL’s scale and portfolio strength position it well to benefit once the environment normalises.
Disclaimer: The views and recommendations made in this article are those of Jefferies. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
