Analyst pegs upside targets at ₹2,775–₹2,900 and recommends buying on dips for long-term compounding.
Hindustan Unilever (HUL) shares fell nearly 1% even as the FMCG major appointed Niranjan Gupta as chief financial officer-designate and member of the HUL Management Committee, effective September 1. He will succeed Ritesh Tiwari, the current CFO, who has been appointed global head of M&A and Treasury at Unilever from November.
Last month, the company named Priya Nair as CEO and MD, following Rohit Jawa’s exit after a little over two years in the role.
Technical Outlook
SEBI-registered analyst Deepak Pal noted that the stock has shown a strong upward rally in the last three trading sessions, consistently forming higher highs. He highlighted three factors driving this upmove: institutional buying ahead of the festive season, traders looking at sector rotation as FMCG offers a haven in uncertain markets, and a technical breakout above moving averages & fresh bullish momentum.
Additionally, indicators like the Relative Strength Index (RSI) at 72.22 show strong bullish momentum, and the MACD is also positive.
Pal said that if HUL stock sustains above ₹2,535–₹2,550, he pegged short-term targets at ₹2,750–₹2,775, while in the medium-to-long term, it may move towards ₹2,850–₹2,900.
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Fundamental View
HUL has a history of stable revenue growth and strong EBITDA margins (~20%). Its strong brand equity, distribution network, and product innovation continue to drive long-term growth. Pal added that the company’s recent cost optimizations and rural recovery are likely to support earnings.
Next Triggers To Watch
He said that the markets expect a volume growth improvement in its upcoming Q2 results in October, and that a positive surprise may drive further upside. Also, the festive season demand between September and November is likely to boost sales in the food and personal care segment. He advised traders to watch for any positive guidance on rural demand & margin outlook, which can trigger buying.
What Should Investors Do?
In the short-term (1-2 months), Pal sees HUL testing ₹2,750–₹2,775 levels, and in the medium term (3-6 months), ₹2,850–₹2,900 is possible if demand growth continues.
For the long-term (over 1 year) he sees HUL as a strong compounding story, and advised buying on dips.
What Is The Retail Mood?
Data on Stocktwits shows that retail sentiment has remained ‘neutral’ for a week.
HUL shares have gained 13% year-to-date (YTD).
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