This FMCG giant poised to reach Rs 3,000 target, here is what analysts say

The domestic equity benchmarks recovered some of their previous day's losses and closed higher today, June 5, with the Nifty50 back over 22,600. The Sensex index rose 2,303.19 points, or 3.20 per cent, to 74,382.24, while the Nifty advanced 735.80 points, or 3.36 per cent, to 22,620.30.

Despite that, analysts suggest buying this FMCG stock for a long-term perspective.

FMCG stock to buy

Zee Business analyst Kushal Gupta suggests investors buy FMCG stock Hindustan Unilever Ltd (HUL) for one year. On Wednesday, June 5, the stock closed at Rs 2,602.9 each, up 4.27 per cent or 106.7 per share on BSE.

HUL- Share price target

Gupta has given a target price of Rs 3,000 per share. The target implies an upside of almost 15 per cent from Wednesday's closing price.

How brokerage Jefferies views HUL now

Jefferies has double upgraded to a 'buy' rating from 'hold' on HUL with a target price of Rs 2,950 per share from earlier Rs 2,530 each. The brokerage in its note stated that HUL offers a good proxy to participate in the likely uptick in rural. 

The stock underperformed in the last 5 years. The valuation is near five-year average, it said. The brokerage has upgraded EPS estimates by 1-3 per cent and upgraded HUL to BUY with a PT of Rs 2,950. The brokerage added that FY25 growth should pick up ahead.

A look at HUL's Q4FY24 results

FMCG major Hindustan Unilever reported a 1.53 per cent decline in consolidated net profit to Rs 2,561 crore for the fourth quarter of FY24 on account of deflation due to softening of commodity prices.

The company had posted a net profit of Rs 2,601 crore in the year-ago period, according to a regulatory filing from HUL.

Net sales of Hindustan Unilever Ltd (HUL) were almost flat to Rs 15,013 crore in the March quarter.

While HUL's total expenses were up 1.15 per cent to Rs 12,100 crore in the March quarter from Rs 11,962 crore a year ago.

The total income of HUL during the fourth quarter of the previous fiscal was flat at Rs 15,441 crore as against Rs 15,375 crore a year ago.

The views/suggestions/advices expressed here in this article are solely by brokerage firm. Zee Business suggests its readers consult their investment advisers before making any financial decision.

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