Street View: Unilever's India unit widens margin view; brokerages seek growth clarity

Unilever

07/09/2026 05:24

** Hindustan Unilever's HLL.NS management focused on delivering volume-led growth and appeared confident on its portfolio and initiatives at its Capital Markets Day, multiple brokerages say
** Dove soap maker widens EBITDA margin outlook to 22%-24% from 22.5%-23.5% earlier and capex was increased to 3% of revenue from 2% earlier
** Shares down 0.4% at 1,965.5 rupees 
     
STRONGER GROWTH CLARITY NEEDED AS MARGINS FACE PRESSURE
** Morgan Stanley ("Equal-weight"; PT: 2,480 rupees) says while it likes focus on volume-led growth, a sustained re-rating of the stock will likely require evidence of stronger growth delivery
** Jefferies ("Buy"; cuts PT to 2,450 rupees from 2,850 rupees) says company's playbook is shifting from a broader reach to sharper, segment-led growth
** Brokerage cuts EPS by 1% to 2% on the risk of lower near-term margins due to higher costs and amid a broader FMCG sector derating
** HSBC ("Buy"; cuts Pt to 2,440 rupees from 2,450 rupees) says while impressed with the breadth and scale of company's portfolio and reach, the promise remains of more incremental progress vs any significant improvement 
** Macquarie ("Outperform"; PT: 2,860 rupees) says while it liked the stable demand trends and comforting growth outlook, clarity on specifics of sales growth and incremental details on growth outlook 
     
          

 (Reporting by Mridula Kumar in Bengaluru)
 ((mridula.kumar@thomsonreuters.com))