HUL Share Price Jumps 12% in 2 Days After Q1 Results – Buy, Sell or Hold?
The HUL share price tanked 12% over 2 days HUL share price tanked 12% in 2 days What should be the investor action now?
Shares of Hindustan Unilever Limited (HUL) have had an acute increase in the past two days. With this short period, there is almost a 12% growth in stock. On August 1, the stock rose as much as 8 percent to 8.5 percent, in intra day trading. This increase was immediately following the posting of the financial results of the July-August-September quarter (Q1 FY2025) by the company.
Many leading brokerage houses also had a positive review of these results and even increased their target prices of the stock further acting as fire catalyst of the rally.
HUL Q1 Results: Profit and Revenue Growth
HUL released its Q1 earnings on July 31. The company also registered a 6 percent increase in its net profit by 2.768 crore as compared to the previous year. The increase in profit was primarily attributed to the reduction in the tax expenses and increase in the sale in major product categories that are based on volume.
The revenue also increased by 5% YoY, bringing it to 16,323 crore. Its volume growth was 4 percent and its underlying sales growth was 5 percent. Nevertheless, the increase in operating profit (EBITDA) slipped by a small margin and stood at 3718 crore. The EBITDA has recorded a slight decline to 22.8% as well.
Should You Buy, Hold, or Sell HUL Shares Now?
The global brokerage firm Goldman Sachs has revised its rating to buy on HUL and target price has been revised upwards to 2900, which is a phenomenal raise of 2000. This is equivalent of a positive change of around 15 percent of the change of the price of the stock on Thursday.
The company has been depicting a promising turnaround, according to Goldman Sachs, and that is because both the outer and inner environment contributed to the company. They expect HUL’s growth to reach high single-digit levels by the second half of FY2026 and into FY2027.
HUL has also been put on a buy rating by JM Financial. To the target price which was 2,770 they said that the performance of the company was meeting their expectations. They are envisaging further volume improvement and anticipate further improvement of the gross margins. The management is continuing to expect margins of 22% to 23% in the next quarters which is near the higher side that was reported in the last quarter.
Motilal Oswal Financial Services too advises purchasing the stock with the target price of 3,000 Rs. That would suggest that there is a potential 19 percent increment of the present value. In their opinion, HUL is presently giving more emphasis on increasing its volumes, new product introductions, and value-oriented plans, which might lead to a higher growth in the FY2026.
Also Read : HCL Technologies Quarterly Results: Growth, Profits & Future Outlook
HUL Share Price Update (Intraday)
At 12.30 PM, August 1, HUL shares were reported to be trading at Rs 2,562.70 which is 1.65 percent up. The intraday high in the stock was during the day at 18:46 hours when it reached 2 unless the Rajasthan unit moves forward, which was 2,727.50.
Final Thoughts
As HUL is reporting very good quarterly earnings, investor confidence is increasing and leading brokerages are giving positive recommendations the stock is picking up momentum in recent times. This might be the right time to buy or stay in the stock should you be an investor seeking to invest in a company that will bring about a steady growth. Nevertheless, it is essential to consult your financial advisor every time you intend to make an investment.
