Hindustan Unilever (HUVR IN) – Q1FY27 Result Update – Demand steady, Input cost volatility to cap margins – ACCUMULATE
Published on 28 Jul 2026
HUL is facing competitive pressure in home care and Toilet soaps and has been able to post strong comeback in Beauty and Nutrition business. HUL continues to focus on new channels, premium products and innovations that will enable increased traction across categories. HUL facing 8-10% RM inflation and we expect calibrated price hikes, any increase in crude prices and likely increase in Palmoil prices due to EL Nino remains a risk to margins over coming 2-3 quarters. We estimate a CAGR of 9% in Sales and 8.7% in PAT over FY26-28. We assign DCF based target price of Rs2320 (Rs2454 earlier). We expect some bottom fishing at this level given stock trades at 39.6x FY28 EPS.
