Hindustan Unilever Shares Rebound Over 3% Following Q1FY27 Earnings; Motilal Oswal Reiterates Buy Rating

Hindustan Unilever equity recovered from post-earnings sell-off to trade 3.27% higher at Rs 2,088.80. Motilal Oswal issued a Buy recommendation with a target price of Rs 2,500.

Investors displayed renewed confidence in Hindustan Unilever on July 29 as the consumer goods titan saw its stock bounce back from the previous session's slump. After absorbing the financial results for the first quarter of fiscal year 2027, market participants stepped in to buy the dip, driving shares up by more than 3 percent during morning trade. Analysts at Motilal Oswal Financial Services also reinforced market optimism by issuing a bullish report with a price target of Rs 2,500 per share.

Morning Stock Recovery and Price Movements
Trading activity on the National Stock Exchange opened on a strong note for the FMCG major. The equity opened at Rs 2050.50 per share on Wednesday morning, quickly gathering momentum to touch an intraday high. By mid-morning, the counter reached Rs 2,088.80, representing an advance of 3.27 percent over its previous close. This recovery offers some relief to shareholders following a challenging period in which the stock registered a 10 percent decline since the beginning of calendar year 2026.

Financial Performance of Q1FY27 Breakdown
The market reaction follows the company's financial results announcement on Tuesday, July 28, covering the April to June quarter of FY27. Standalone net profit for the three-month period experienced a 4 percent year-on-year drop, settling at Rs 2,631 crore. However, consolidated revenue excluding the impact of the ice cream division demerger rose 10 percent year-on-year to reach Rs 17,180 crore. This performance marks the company's first double-digit revenue expansion achieved in the past 12 quarters.

Segment-Wise Growth and Profitability Drivers
Operational performance across business divisions revealed contrasting trends in volume growth and margin retention. Home Care emerged as the strongest revenue driver, recording a 13 percent increase in sales, although rising raw material expenses compressed its profit margins. The Beauty and Wellbeing division delivered robust metrics, logging a 12 percent growth in revenue alongside a 13 percent rise in operating profit (EBIT). Meanwhile, Personal Care posted a 3 percent increase in revenue with a 9 percent expansion in operating profit. The Foods and Refreshment vertical registered 7 percent revenue growth and a 14 percent boost in operating profit.

Brokerage Target and Long-Term Capex Outlook
Brokerage firm Motilal Oswal Financial Services published a research note on July 29 maintaining its Buy rating on the stock, setting a price target of Rs 2,500 while keeping earnings per share estimates for FY27 and FY28 intact. "HUVR continues to remain focused on driving volume-led revenue growth, even if it comes at the expense of near-term margins," the report noted. Additionally, the company announced a strategic capital expenditure plan of Rs 20 billion aimed at expanding premium and high-growth segments, signaling confidence in delivering stronger operational performance in FY27 compared to FY26.

What this means for you
• Across India: Double-digit revenue growth after 12 quarters and a Rs 20 billion capex commitment signal sustained long-term consumer demand in the FMCG sector.
• For Shareholders: The 3.27% rebound and Motilal Oswal's Rs 2,500 target price offer positive upside momentum for investors following a 10% YTD slump in 2026.

Questions & Answers

1. How much did Hindustan Unilever shares rise on July 29?
Hindustan Unilever shares climbed 3.27% in morning trade to reach Rs 2,088.80 on the NSE.

2. What were HUL's net profit and revenue figures for Q1FY27?
Standalone net profit declined 4% YoY to Rs 2,631 crore, while consolidated revenue grew 10% YoY to Rs 17,180 crore.

3. What is Motilal Oswal's target price and rating for HUL?
Motilal Oswal maintains a Buy rating on HUL with a price target of Rs 2,500.

4. How much capex has HUL planned for premium categories?
HUL announced a capital expenditure plan of Rs 20 billion focused on premium and high-growth segments.

https://trendkia.com/en/market/hindustan-unilever-ke-sheyaron-men-3-se-jyada-ka-uchhala-pahali-timahi-ke-natijon-ke-bada-brokareja-ne-diya-kharidari-ka-lakshya-11713
TrendKia — Har trend, sabse pehle.