What should investors do with HUL post Q3 result: Buy, sell or hold?


Consolidated revenue from operations grew by 21 percent to Rs 11,872 crore in Q3FY21 compared to Rs 9,808 crore reported in the same period last year, with domestic volume growth of 4 percent.

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Hindustan Unilever (HUL) shares fell in early trade on January 28, a day after the company announced its December quarter numbers.

The FMCG major on January 27 has posted a 19 percent year-on-year growth in profit at Rs 1,921 crore for the quarter ended December 2020 backed by strong revenue growth and operating income. The profit in the corresponding period was Rs 1,616 crore.

Consolidated revenue from operations grew 21 percent to Rs 11,872 crore in Q3 FY21 compared to Rs 9,808 crore reported in the same period last year, with domestic volume growth of 4 percent.

Also Read – HUL Q3 profit climbs 19% to Rs 1,921 crore, revenue rises 21%

Below is a summary of what some brokerages are saying about the stock and the company after the Q3 numbers:


HUL’s management is optimistic about better growth in the coming quarters because of improving demand environment, gaining market share in key categories, and new products gaining good traction. Rural demand outpacing urban demand, improving growth prospects for health food drinks, and an expected recovery in discretionary categories remain key growth drivers in the near term.

We expect HUL’s revenue and PAT to register a CAGR of 13% and 21% over FY2020-FY2023 (including the acquired business of GSK Consumers). We maintain our buy recommendation on the stock with an unchanged price target of Rs 2,790. The stock is currently trading at 47x its FY2023E EPS.

Prabhudas Lilladher

We remain constructive on HUL post 3Q Concall given improving growth outlook led by 1) Robust growth across Health, Nutrition and Personal care, 2) Increasing distribution reach, 3) Strong portfolio of new products in Hygiene, Nutrition and Personal care 4) restoration of supply chain 5) higher share in distribution platforms of future (MT and e-com) and 6) Synergy benefits from GSK merger

We expect near term margin pressure in select categories of Tea and P wash, however, worst seems to be over given F&R margins in 3Q (ex GSK) at just 8-9% (Est). We estimate CAGR of 11.6/15.7/18.2% in Sales, EBIDTA and EPS over FY21-23. Retain buy with DCF based target price of Rs 2502.

Dolat Capital

We have tweaked our FY21/FY22/FY23E EPS estimates to Rs 34.0/40.0/46.1 to factor in Q3 performance. Valuing the stock at 55x FY23E EPS, we have arrived at a target price of Rs 2,535. We maintain reduce. Considering recent run up in stock price, there is limited room for further upside. However, fundamentally, we see high growth prospects for HUL going ahead. Buy on dips.

Motilal Oswal

The company’s earnings growth has gained further momentum in recent years (17% EPS CAGR in the past three years v/s ~12% CAGR over 10 years). This is particularly impressive given the weak mid-single-digit earnings growth posted by (much smaller) peers in recent years. Valuing the company at 55x FY23 EPS, we arrive at target price of Rs 2,690. Maintain buy.


CLSA has maintained buy call with a target at Rs 2,925 per share. The Q3 results were largely in-line, with revenue, EBITDA & earnings growth of 20/16/19% YoY. Company sounded confident on near-term tactical volume strategy & execution.

We continue to see company as a structural play in Indian FMCG and it is our key pick for 2021, reported CNBC-TV18.


Research house Citi has retain buy call with a target at Rs 2,730. The prioritising volume-led growth in the near term. Research house raises revenue forecasts by 1-2%.

The company remains a very well-managed business. As mobility improves, the drag due to discretionary/OOH segments should reverse, reported CNBC-TV18.


Jefferies has kept the buy call with a target at Rs 2,780. The management intends to prioritise growth over margin. The pick-up in personal care is a positive while muted trend in laundry, a disappointment, reported CNBC-TV18.


JPMorgan remained overweight on the stock with a target at Rs 2,610. The prioritising revenue growth over the margin. JPMorgan lower FY21-23 EPS estimates by 3-5% to account for lower margin & other income and upgrade revenue forecasts by 2%. It stay overweight & would add into any pullback, reported CNBC-TV18.

At 09:21 hrs Hindustan Unilever was quoting at Rs 2,388.55, down Rs 2.75, or 0.12 percent on the BSE.


The share touched its 52-week high Rs 2,614 and 52-week low Rs 1,756 on 08 April, 2020 and 19 March, 2020, respectively.

Currently, it is trading 8.62 percent below its 52-week high and 36.02 percent above its 52-week low.