Hindustan Unilever Ltd. (HINDUNILVR: NSE) is facing mounting challenges due to weakened demand in rural areas and poor performance in Q3. Analysts are increasing their sell recommendations and expressing concerns about the company’s dependence on rural consumers and its ability to sustain growth in a challenging environment.
Stock Target Advisor’s Analysis on Hindustan Unilever:
Stock Target Advisor offers an insightful perspective by rating it as a “hold” with a target price of INR 2612.5. Observations suggest a potential price change of 10.06% within the next 12 months, with most analysts settling at an average target price of INR 2,803.15 and an average buy rating.
However, the Stock Target Advisor urges caution, offering a neutral perspective based on a balanced count of seven positive and seven negative signals observed. Notably, the last closing stock price was at INR 2,373.80, reflecting changes of -8.72% (1 year), -201.80% (1 month), and -8.72% (1 year).
08 analysts covering the company, the average rating indicates ‘Buy’, with an average target price per share of INR 2803.15. The range of target prices suggests a maximum price of INR 3109 and a minimum at around INR 2550.
Hindustan Unilever’s Key Financial Metrics:
Investigating the trailing 12-month returns, the 1-year capital gain is negative at -8.72% (ranked at the 6.67 percentile within the sector). However, the 1-year dividend return is mildly promising at 1.54%, placing in the 66.67 percentile of the sector, leading to a total return of -7.18%.
Impressive five-year growth analysis indicates revenue growth at 67.53%, earnings growth at 94.09%, and dividend growth at 300.85%, ranking 86.67%, 86.67%, and 54.55% respectively within the sector.
Conclusion:
Market analysts have raised concerns about the company’s ability to sustain its growth in such a challenging environment. The rise in sell calls reflects a growing sentiment among analysts that Hindustan Unilever Ltd. (HINDUNILVR: NSE) may struggle to meet future expectations.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
