ICICI Securities has issued a buy rating on Hindustan Unilever Limited (HUL) with a target price of ₹2,800 in its research report dated May 02, 2026. According to the brokerage's analysis, the company has been demonstrating an improving volume trajectory in FY26, with the latest 6% volume growth in Q4 representing another positive development in this trend. The recommendation comes as part of an upgrade note that welcomes Ms. Priya Nair to the company's leadership.
The brokerage highlighted several positive developments in HUL's portfolio performance. Double-digit revenue growth has been achieved in both Fabric Wash and Lifestyle Nutrition segments, with the Fabric Wash category expected to improve further with the return of price growth. The liquids portfolio, which represents high-margin and faster-growing segments, now accounts for more than 10% of the total portfolio. Additionally, the company has achieved approximately 8% increase in direct distribution, while the Minimalist brand has reached ₹7 billion in Annual Recurring Revenue (ARR).
Despite the positive developments, ICICI Securities noted that problematic segments including Glow & Lovely, Lifebuoy, and Pepsodent continue to present challenges. However, the brokerage believes that execution strengthening and structural actions are gaining traction, leading to improved visibility on a more durable growth phase. The company's revenue, EBITDA, and PAT are projected to grow at CAGR of 13%, 13%, and 11% respectively over FY26-28E.
At the target price of ₹2,800, the stock could trade at 49x P/E on March 2028 estimates. ICICI Securities has maintained its buy rating with an unchanged target price of ₹2,800, incorporating consolidated financials in their modeling approach. The brokerage's valuation is based on a DCF-based methodology for the target price determination.
