Thu Oct 24 18:30:53 UTC 2024: **Summary of Hindustan Unilever (HUL) Q2 Financial Results and Market Reaction**

– **Share Movement**: HUL’s shares fell nearly 5% following the release of its Q2 FY25 financial results, dropping to a low of Rs 2,507 on the BSE and closing at Rs 2,512.45.

– **Profit Decline**: The company’s standalone net profit decreased by 4% to Rs 2,612 crore, down from Rs 2,717 crore in the same quarter last year, which significantly impacted investor sentiment.

– **Revenue Performance**: HUL’s revenue from operations rose slightly by 2% to Rs 15,319 crore, compared to Rs 15,027 crore in Q2 FY24.

– **Market Challenges**: The FMCG sector faces ongoing challenges, including high raw material costs and slow recovery in rural demand, affecting profit margins.

– **Dividend Announcement**: HUL declared an interim dividend of Rs 29 per share, with a record date of November 6, 2024, likely aimed at soothing shareholder concerns amid declining share prices.

– **Analyst Opinions**:
– **Nuvama**: Retained a ‘buy’ rating, increased target price to Rs 3,395, citing expectations for a rural market recovery.
– **Motilal Oswal**: Optimistic about HUL’s recovery; acknowledged a 2% decrease in EPS estimates for FY25 and FY26 due to raw material costs.
– **HDFC Securities**: Maintains a “buy” rating with a target price of Rs 3,200, expecting CAGR of 6% in revenue and 8% in net profit from FY24 to FY27, bolstered by rural development.

– **Investor Advisory**: The article includes a disclaimer urging investors to consult financial advisors before making investment decisions.

Overall, while HUL faced a decline in profits and market response, analysts project potential recovery supported by strategic positioning in the FMCG market.

Read More