HUL Share Price Target 2024: BUY, SELL or HOLD Amid Consumer Giant’s Possible Sale of its Ice Cream Business? (image source: Canva)
HUL Share Price Target: India’s biggest consumer goods company, FMCG Major Hindustan Unilever Limited (HUL). HUL shares on Friday’s trading session gained 0.31 per cent or 4.4 rupees at Rs 2,272 per share on the National Stock Exchange (NSE). While on the Bombay Stock Exchange (BSE) the HUL shares have gained over 0.20 per cent or Rs 4.45 per share at Rs 2,270 at 2:p.m today. However, In the early trades the stock has gained nearly 1 per cent on Indian equity indices both NSE and BSE.
HUL Share Price
From the last one year, the stock price of HUL has been volatile. HUL shares have recently on March 38 fall to 52 week low at Rs 2,240 per share. As per the current market price(CMP) at 2:00 pm on Friday HUL’s share price was at Rs 2,270 per share. As the stock is at one of the lowest prices in the last one year, should investors leverage this opportunity to Buy? or existing investors should sell the stock and book profits.
HUL Share Price Target: ‘BUY, SELL or HOLD’
Leading brokerage CLSA has termed the company stocks as an underperformer and the brokerage has revised the HUL share price target price to Rs 2,595 per share by maintaining a ‘Neutral’ rating on the stock.
HUL Latest News
Hindustan Unilever Ltd (HUL) is reportedly contemplating the idea of segregating its ice cream business into a distinct unit, potentially paving the way for a future sale, ET reported citing its sources familiar with the matter. This strategic move follows the decision of its parent company, Unilever, to spin off its ice cream division to concentrate on segments aligned with a similar operational model and supply chain.
The ice cream business demands a unique approach to both manufacturing and distribution, which differs from HUL’s other product categories. While HUL is a dominant leader in home and personal care segments, it faces stiff competition in the Indian ice-cream market, with brands like Magnum and Kwality Wall’s contributing approximately Rs 2,000 crore, constituting roughly 3 per cent of its total sales.
HUL competes with various local and global players in the ice cream segment, including Amul, Mother Dairy, Vadilal, CreamBell, Naturals, Havmor, and Baskin Robbins. Despite trailing behind Amul in market share, the scalability of the ice-cream business, spanning both mass and premium segments, makes it an attractive proposition in India.
The decision to explore a potential sale of the ice cream business hinges on various factors, including the valuation it could command in the market. Should HUL receive an attractive offer, it may opt for a sell-off; however, if the valuation falls short, the company might prioritise scaling up the business as a separate entity for a period of 12-15 months before revisiting its strategic options.
Industry Outlook and Growth Potential
The Indian ice cream market is poised for significant growth, with estimates suggesting that it will surpass $5 billion in sales by FY25, up from $3.4 billion presently. Despite the complexities involved in the ice-cream business, HUL remains optimistic about exploring strategic avenues to maximize value and capitalize on emerging market trends.
