HUL disappoints Street with its first quarter results, rising competition hurts volume growth

The Street is cautious on the company's outlook, given that recovery will take time due to macro headwinds. Jefferies has downgraded the stock to 'hold' rating and target price is cut to Rs 2,770 from Rs 2,875/share. The Earnings Per Share (EPS) estimates are cut by 1-3 percent. Antique Stock Broking has also cut its earnings estimates by 2 percent and 1 percent for FY24 and FY25.

HSBC says the volume growth trajectory and extent of margin gains will be main catalysts for company growth. HSBC has assigned a buy rating and Rs 2,950 as the target price.

JP Morgan says it has been an unexciting quarter for HUL and weather risks remain a key watch. The brokerage has an overweight rating and is positive on quarter on quarter improving trends in rural India sales. CLSA maintains outperform rating on HUL with target price at Rs 2,925.

Nuvama says the demand situation is dynamic given uncertainty around the

macro environment. However, HUL is well placed in terms of supply chain preparedness. That said, to incorporate the miss in numbers, Nuvama is cutting FY24 and FY25 EPS by 3 percent each, yielding a target price of Rs 3,280.

HUL is trading 1.6 percent lower on July 21 morning.