HUL shares hit 52-week low but brokerage expects 24% upside; here's why 

Shares of Hindustan Unilever Ltd (HUL) hit a fresh 52 week low on Tuesday, slipping 6% in two weeks. The 52-week low in HUL stock comes at a time when global brokerage HSBC sees a 24% upside in the FMCG stock. HSBC believes that barometer for guidance should be higher vs current guidance (FY27 growth is greater than FY26).

The brokerage assigned a buy call to the stock with a target price of Rs 2450. This amounts to a 24% upside against the previous close of Rs 1995.

HSBC said HUL’s 3-4% profit before tax (PBT) CAGR over FY24-27e is underwhelming against aspiration of double-digit growth laid out in last Capital Markets Day (CMD) in 2024. The company will hold its Capital Markets Day 2026 Webcast on Friday, September 4, 2026, in Mumbai.

On the upcoming CMD, the brokerage said it is important given sustained underperformance (FY20-26: -1% share price CAGR) and management change.

Meanwhile, HUL shares slipped to a low of Rs 1983.15 in the current session. Market cap of the firm fell to Rs 4.66 lakh crore.

The technicals for the FMCG stock indicate it trades below all short-term and long-term moving averages. HUL has a low beta of 0.73 signaling very low volatility in a year. The RSI stands at 31.2, which signals the stock has approached the oversold zone. An RSI below 30 indicates that the stock is oversold on charts. This means the stock has more sellers than buyers.

HUL clocked a 4% fall in standalone net profit at Rs 2,631 crore in Q1 as higher raw material costs and expenses, partly linked to the Middle East war, hit margins. Standalone net profit came at Rs 2,732 crore in the year-ago period.

Revenue from sale of products rose 10.3 per cent to Rs 17,149 crore. The turnover was referred to as its highest in the last 13 quarters by the company.

"Despite global geopolitical volatility, the Indian economy demonstrated resilience, supported by proactive fiscal and monetary policy measures. The underlying demand environment remained stable during the quarter," said chief executive officer and managing director Priya Nair.