Hindustan Unilever's earnings per share (EPS) estimates for FY25, FY26, and FY27 have been revised downwards due to various factors such as softening urban demand, ongoing inflation in key commodities, and increased competition in the mass market.
The company is implementing changes in formulation and pricing strategies to improve gross margins in the second half of the fiscal year.
Despite a projected compound annual growth rate (CAGR) in profit after tax (PAT) from FY25 to FY27, the target price for Hindustan Unilever has been adjusted, reflecting a target price-to-earnings (PE) ratio based on September 2026 EPS.
The recommendation remains a "Hold" due to recent corrections and limited potential for significant upward movement in the near term. It is advisable for investors to seek advice from certified experts before making any investment decisions.