Hindustan Unilever Ltd (HUL) has announced that its Board of Directors will meet on October 23, 2024, to review the company’s financial results for the quarter and half-year ending September 30, 2024. The board will also consider the possibility of declaring an interim dividend, with the record date set for November 6, 2024, if approved.
HUL’s stock performance has seen a recent decline of 7.74% over the past two weeks, with the last trading price recorded at ₹2754.20 per share on the BSE. Despite this short-term dip, the stock has delivered a solid 20% return over the last six months. Brokerage firm Hem Securities has issued a buy recommendation for HUL shares, setting a target price of ₹3387, which represents a potential upside of 22.98% from the current price.
However, HUL has received a ₹963 crore income tax demand notice, posing a financial challenge. Meanwhile, the Reserve Bank of India’s (RBI) focus on inflation during its October 2024 monetary policy meeting has raised concerns among FMCG investors. Rising input costs may pressure profit margins in the sector, but analysts believe companies like HUL are well-equipped to navigate these challenges due to their pricing power and strong demand for essential products.
Earlier in 2024, HUL declared a total dividend of ₹42 per share for the financial year ending March 31, 2024, including a final dividend of ₹24 per share. Despite inflationary concerns, the upcoming festive season and wedding demand in Q3FY25 are expected to support revenue growth in the FMCG sector, with HUL poised to benefit from these trends.
For investors, HUL’s strong fundamentals, resilient portfolio, and robust dividend history make it an attractive option, even amid market volatility
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