Thu Jan 23 19:20:46 UTC 2025: ## HUL Share Price Plunges Despite Q3 Profit Surge; Brokerages Turn Cautious

**Mumbai, January 23, 2024** – Hindustan Unilever Limited (HUL) shares experienced a significant drop today, falling to near 8-month lows despite reporting a nearly 9% jump in Q3FY25 profit. The decline follows a wave of downgrades and lowered target prices from several brokerage firms who expressed concerns over weakening demand and shrinking margins.

The share price slumped to approximately Rs 2,299.70, reflecting a negative market sentiment. UBS, while maintaining a Neutral rating, reduced its target price from Rs 2,800 to Rs 2,700, citing weak product mix impacting volume growth and predicting soft demand in the near term. Their EPS estimates for FY25-27 were cut by 1% to 5%.

Taking a more pessimistic view, CLSA downgraded HUL to “Underperform” and slashed its target price to Rs 1,924. They highlighted weak Q3 growth and lower margins across three out of four segments, revising FY25-27 EPS estimates down by 4% to 6%. Concerns were also raised about the recent minimal acquisition.

Another brokerage firm, which maintained a Neutral rating, cut its target price to Rs 2,480, citing below-estimate Q3 results, particularly in volume and EBITDA growth. They noted a worsening urban slowdown and a trend towards consumers purchasing smaller packs. Further margin weakening, especially in the Beauty & Wellness segment, is also anticipated.

While Nuvama retained its Buy rating, it lowered its target price from Rs 3,395 to Rs 3,225, acknowledging below-expectation volume growth. However, they viewed the overall performance as in line with expectations and revised their FY25-27 EPS estimates downward by 3% to 5% to account for raw material inflation. The discrepancies in analyst opinions highlight the uncertainty surrounding HUL’s near-term prospects.

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