Domestic brokerage firm Motilal Oswal has reiterated a 'Buy' rating on Hindustan Unilever Ltd. with a target price of ₹2,650, implying an upside of around 21% from current levels. According to the brokerage, HUL continues to strengthen the key drivers underpinning its success in India over the last decade, including pioneering the use of technology to generate data and facilitate decision-making, the Winning in Many Indias (WiMI) strategy, inorganic growth opportunities, and funneling cost savings back into the business. The latest recommendation was made in Motilal Oswal's research report dated June 22, 2026.
The brokerage highlighted that HUL has continued to strengthen its brand, distribution network, and quality of personnel, thereby staying ahead of its peers. Through its analytics and R&D initiatives in recent years (much ahead of its peers), the company is ensuring it remains resilient in a dynamically changing environment. As reported by Motilal Oswal, HUL remains focused on topline growth, backed by volume acceleration alongside new launches across categories and channels, with the company unveiling its 'Unified India' strategy to simplify the organization structure to accelerate decision-making and execution. The company's FY26 annual report highlights its key focus on portfolio transformation, driven by increased innovation across high-growth segments and strengthening omnichannel capabilities.
According to Motilal Oswal's latest analysis, demand trends improved progressively through FY26, aided by improving macros and government measures. Consumer behavior in FY26 continued to reflect a dual pattern: value-consciousness in everyday essentials coexisted with a growing willingness to premiumize in categories offering superiority. This affordability-versus-aspiration dynamic shaped HUVR's portfolio strategy across the year. On the channel front, alternate channels outpaced traditional general trade, with E-commerce delivering over 25% turnover growth and Quick Commerce (QC) turnover doubling in FY26.
According to the brokerage, HUL continues to remain focused on driving volume-led revenue growth, even at the expense of near-term margins. In its Q4 FY26 concall, HUVR maintained consolidated Ebitda margin guidance of 22.5-23.5% (adjusted for the ice-cream business demerger). The company announced ₹2,000 crore of capex toward premium and high-growth categories and remains optimistic about delivering improved performance in FY27 vs FY26. Motilal Oswal has reiterated its Buy rating on the stock with a target price of ₹2,650 (50x on Mar'28E EPS).
