Hindustan Unilever Ltd (HUL), India’s leading FMCG giant, has witnessed a strong rally in its stock price, soaring over 12% in just two trading sessions. The rally comes after the company announced its Q1 FY2025 results, which, despite moderate topline growth, impressed the market with its margin improvement and future outlook. Adding fuel to the rally, several top brokerages have revised their target prices upward, signaling renewed confidence in the stock.
Let’s break down the reasons behind the surge and whether now is the right time to buy, sell, or hold HUL shares.
🔍 Q1 FY25 Highlights: Key Takeaways
- Revenue: ₹14,890 crore (YoY growth of 3%)
- Net Profit: ₹2,760 crore (up 4% YoY)
- EBITDA Margin: Expanded to 23.2% from 22.1% YoY
- Volume Growth: Estimated at 4% – a positive surprise amid a weak rural demand environment
Management highlighted improving urban consumption trends and expects a gradual rural recovery, which boosted investor sentiment.
📈 Why Did HUL Shares Jump?
- Margin Expansion: Focus on premium product portfolio and easing input costs improved profitability.
- Improved Guidance: HUL hinted at a better outlook for FY25, backed by softening inflation and demand normalization.
- Brokerage Re-Ratings:
- Jefferies: Target raised to ₹3,050 from ₹2,780 – “HUL well-placed to gain in the next demand cycle.”
- Morgan Stanley: Upgraded to “Overweight” – sees long-term growth in premium personal care and home care categories.
- CLSA: Target price set at ₹3,000 – positive on rural recovery and cost control strategy.
- Jefferies: Target raised to ₹3,050 from ₹2,780 – “HUL well-placed to gain in the next demand cycle.”
🧠 Expert Opinion: Should You Buy, Sell, or Hold?
✅ Buy – If You’re a Long-Term Investor
HUL is a defensive play in uncertain markets. With rural demand likely to improve in H2FY25, and commodity pressures easing, it may be a good time to enter or accumulate gradually. Its leadership across FMCG segments offers strong long-term potential.
✋ Hold – If You Already Own It
If you bought HUL earlier at lower levels, consider holding. With upward revisions in target prices and improving fundamentals, there’s still upside potential. You can set a short-term target around ₹2,950–₹3,050 based on brokerage estimates.
❌ Sell – If You’re a Short-Term Trader
Given the sharp 12% rally in just 2 days, a minor pullback or consolidation is likely. If you’re sitting on quick profits and your risk appetite is low, booking partial profits can be a safe strategy.
📊 HUL Share Price Outlook (August 2025)
- Current Price: ₹2,850 (as of August 1, 2025)
- 52-Week High: ₹2,980
- Analyst Target Range: ₹2,950–₹3,100 in next 6–12 months
🔚 Final Verdict
HUL’s recent Q1 results have renewed confidence in its earnings trajectory. Strong brand equity, wide distribution, and margin improvement make it a resilient stock for long-term portfolios. However, short-term investors should be cautious after the recent rally.
Investment decision:
- Long-term: BUY / HOLD
- Short-term: Book partial profits or wait for dip
I am a digital marketing executive as well as content writer in the stock market and crypto related blogs. My goal is to provide simple, interesting and reliable information to readers through my articles so that they always stay updated with the world of stock market and crypto.
