HUL Share Price Target: Emkay Revises TP to Rs 2,400 Amid Margin Guidance Cut

Brokerage firm Emkay Global Financial Services has revised Hindustan Unilever’s (HUL) share price target to Rs 2,400, reflecting a cautious stance on the stock’s upside. The target is based on a 47x Price-to-Earnings (P/E) valuation.

Despite a modest earnings beat in Q4FY25, the brokerage noted ongoing concerns over HUL’s uneven segmental performance and revised margin outlook.

HUL Share Price Target 
In its latest report, Emkay stated, “We maintain… Mar-26E TP of Rs2,400 (47x P/E), given limited upside potential. Our concern stems from HUL’s inability to fully benefit from the improved show in part of the business as well as inconsistent performance in the segments.”

HUL Q4 Results FY25
HUL reported a 2% year-on-year (YoY) revenue growth in Q4FY25, with 2% underlying volume growth. While the Beauty & Personal Care (BPC) segment posted a healthier 4% growth, Home Care (2%) and Foods (flat) remained weak. The gross margin contracted by 155 basis points (bps) to 50.5%, and the EBITDA margin slipped to 22.8%, falling below the earlier guidance of 23–24%.
 

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Margin Guidance Cut Signals Growth Focus
The company has revised its near-term operating margin guidance to 22–23%, indicating its willingness to take a margin hit in the short term to drive growth—particularly in high-potential categories like Beauty and Wellbeing. “With better macros and portfolio actions, the management sees improved growth ahead,” Emkay noted.
The growth strategy aligns with improving macroeconomic indicators such as lower inflation, tax relief, easing crude prices, and a potential monsoon boost—factors that are expected to lift rural demand and consumption.
 

Future Growth Hinges on Execution
Despite the softer performance and downward revisions, HUL’s long-term vision remains intact. Emkay added, “With likely growth as operating leverage kicks in, HUL is looking to recover margin from 2HFY26.” 

The management continues to strengthen distribution, with direct value-added distribution now at 69%—a 400bps improvement over the last 18 months.
HUL remains deeply aligned with traditional trade, which accounts for 70% of its sales. Modern trade and e-commerce contribute around 20% and 7–8% respectively, with Quick Commerce forming a small but rising share.

Emkay concludes that while HUL’s strategic and brand initiatives are in place, the firm prefers to await a more visible growth recovery before taking a more bullish stance. For now, the brokerage advises investors to remain watchful, maintaining its revised HUL share price target at Rs 2,400.