Hindustan Unilever shares in focus as Capital Markets Day outlines growth levers; what are Goldman Sachs and Nomura saying?

Shares of FMCG bellwether Hindustan Unilever will be in focus heading into trade on Monday after the company’s Capital Markets Day highlighted a series of measures it has taken to reset growth, which management said have led to sequential improvement over the past three quarters.

The company is focused on making its brands more desirable through the SASSY framework while sharply concentrating resources on fewer, larger opportunities. It is also accelerating growth across key geographies, channels and portfolios.

HUL has stepped up execution across marketing and point-of-sale initiatives, while working towards a future-fit go-to-market model and setting up a new quick-commerce organisation. HUL is also rewiring its organisational structure to improve agility through a unified India operating model.


According to management, these efforts are further supported by India's consumption story, which combines scale with per-capita growth, along with structural shifts driving the evolution of “New India.”

What are analysts saying?

Goldman Sachs has a Buy rating on Hindustan Unilever with a target price of Rs 2,450. The brokerage said the company’s first Capital Markets Day under CEO Priya Nair provided sharper strategic clarity, with Foods and Beauty & Wellbeing expected to drive faster innovation and new adjacencies. It noted that Horlicks is being repositioned towards lifestyle nutrition, including the launch of a yeast-based protein.

Minimalist’s revenue has doubled to around Rs 9 billion in ARR over the past two years. Goldman Sachs also noted that medium-term margin guidance has been widened to 22-24% from 22.5-23.5%, while capex is set to increase to 3% of revenue from 2%. Near-term industry growth remains resilient, although the company has not provided explicit growth guidance.

Nuvama has a Buy rating on Hindustan Unilever with a target price of Rs 2,820. The brokerage said HUL’s growth strategy is centred on consumption, premiumisation, market making and new growth spaces. Medium-term EBITDA margin guidance has been raised to 22-24% from 22.5-23.5%.

Nomura has maintained its Buy rating on HUL with a target price of Rs 2,450. The brokerage values HUL at 45x June 2028F EPS and expects FY26-29F EPS to grow at a CAGR of around 10%. It said the 45x P/E represents a 20% discount to HUL’s five-year P/E, citing unexciting near-term EPS growth. Nomura has retained its target price and reiterated its Buy rating, noting that the stock is trading at two standard deviations below its 10-year average P/E. The key risk identified by the brokerage is weak growth.

Nomura said HUL CEO Priya Nair, in her maiden Capital Markets Day, presented the company as a cohesive and well-aligned organisation focused on reviving the uninspiring growth seen over the past few years. The brokerage viewed her approach and proposed solutions to the challenges faced in the past as more pragmatic.

Nair’s strategy is to drive 40% of growth through increased consumption by encouraging higher usage and premiumisation with more benefits, 40% through market-making by bringing in more users, and the remaining 20% by shifting the portfolio towards high-growth new white spaces and formats.

Nuvama said the company is targeting 500 bps of savings through premiumisation, operating leverage, the Future Savings Lab and AI. Capex is expected to rise to 3% of sales, with more than 85% directed towards growth and savings. The brokerage also highlighted underpenetrated categories such as liquid detergents, body wash and skincare as significant growth opportunities. It expects FY27 to outperform FY26, with revenue growth estimated at 10%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)