HUL Q2 Review: Macro Drivers Constructive; Expectations Rising For H2 Says Motilal Oswal
Hindustan Unilever Ltd. (HUL) has reported its Q2 results, with the company planning to focus aggressively on volume acceleration, alongside new launches and the reactivation of its value proposition, which is expected to drive further growth from H2 FY26 onwards.
Macro Drivers Constructive
According to Motilal Oswal, the macro drivers for HUL are constructive, with the company expected to benefit from the growing demand for consumer goods in India. The brokerage firm has maintained its ‘Buy’ stance on HUL, citing the company’s focus on driving volume-led earnings growth, even if it comes at the expense of near-term margins.
Volume-Led Earnings Growth
Under the new leadership, HUL continues to remain focused on driving volume-led earnings growth, which is expected to be driven by the company’s aggressive focus on volume acceleration and new launches. This strategy is expected to drive further growth from H2 FY26 onwards, with Motilal Oswal maintaining its estimates for FY26-FY28.
Growth Strategy
HUL’s growth strategy is focused on driving volume-led earnings growth, with the company planning to launch new products and reactivate its value proposition. The company is also expected to benefit from the growing demand for consumer goods in India, with the Indian consumer goods market expected to grow at a rapid pace in the coming years.
Indian Stock Market
The Indian stock market has been volatile in recent times, with the Nifty and Sensex indices experiencing significant fluctuations. However, with the economy expected to grow at a rapid pace, the Indian stock market is expected to benefit, with companies like HUL expected to be major beneficiaries.
Investing in HUL
Investing in HUL can be a good option for investors looking to benefit from the growing demand for consumer goods in India. With the company’s focus on driving volume-led earnings growth and its aggressive growth strategy, HUL is expected to be a major player in the Indian consumer goods market. However, investors should do their own research and consult with a financial advisor before making any investment decisions.
Conclusion
In conclusion, HUL’s Q2 review indicates constructive macro drivers and rising expectations for H2, with Motilal Oswal maintaining a ‘Buy’ stance. The company’s focus on driving volume-led earnings growth and its aggressive growth strategy are expected to drive further growth from H2 FY26 onwards. With the Indian stock market expected to benefit from the growing economy, investing in HUL can be a good option for investors looking to benefit from the growing demand for consumer goods in India.
