The stock also rose in the tsunami of the recession, foreign brokerages are showing emphasis.

New Delhi. The stock of Hindustan Unilever (HUL) remained strong not only in the tsunami of recession that followed on the day of the Lok Sabha election results. The next day, on June 5, the share gained 9 percent intraday and then closed at Rs 2,602.90 with a gain of 4.27 percent on the BSE. Foreign brokerage firm Jefferies is bullish on the stock after the 2024 Lok Sabha election results and has advised investors to buy the stock. Notably, the share of HUL has been sluggish for quite some time and the share has lost investors around 6% in a year. HUL shares are trading down 2.60% at Rs 2535.05 on NSE today i.e. Thursday.

Global brokerage firm Jefferies expects HUL’s performance against the Nifty 50 over the past three and five years to start improving now. “HUL has significantly underperformed the Nifty as it has faced significant growth and margin challenges over the past few years,” the brokerage said. Jeffries added that the surprising results of the Lok Sabha elections have given him confidence that the government will adopt a more pro-consumption policy, especially for rural and bottom class (BOP) consumers.

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The price can go up to Rs 2950.
Jefferies has upgraded HUL to a ‘Buy’ rating. The brokerage has also raised its target price to Rs 2,950 from Rs 2,530. Jefferies says some companies are pointing to the expected growth in rural areas, which bodes well for the market. The brokerage expects HUL’s growth to accelerate in FY25. Jefferies has raised its earnings per share (EPS) estimates by 1-3%.

Quarterly results were in line with expectations.
During the last quarter of FY 2024 i.e. January-March period, HUL earned a net profit of ₹ 2,406 crore. The company’s revenue also came in line with expectations in the quarter. The company’s EBITDA was ₹3435 crore, which was in line with expectations of ₹3430 crore. EBITDA margin was 23.1%. The company’s management is optimistic about an increase in growth due to better monsoon and improving macroeconomic conditions.

(Disclaimer: The stock mentioned here is based on the advice of the brokerage houses. If you want to invest in any of them, consult a certified investment advisor first. News 18 of any profit or loss you make. will not be responsible).

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