Is it hard times or good times ahead for the company that’s part of every Indian household? From detergent soaps to desserts, HUL has a presence in most FMCG segments, be it personal care or party essentials, and leading domestic brokerage house Motilal Oswal recommends ‘Buy’, They expect a whopping 19% upside in the HUL share price over the next 12 months. The brokerage house has set a target of Rs 3,000 per share.

What’s powering Motilal Oswal’s bullish call on HUL: 3 reasons

There are many factors that Motilal Oswal is looking into, from the appointment of a new CEO to the company’s growth strategy-

Motilal Oswal on HUL: What does the new CEO bring to the table

The HUL share price has been decidedly active and buzzing ever since Priya Nair, the current President of Beauty & Wellbeing at Unilever, was appointed CEO and MD of the company with effect from August 1. The stock has been up 5% in the last days. The extent of the outperformance can be gauged well when you compare it with the stock’s performance in the last 1 year or last 6 months. The sharp uptick in 5 days clearly shows the renewed investor confidence.

According to Motilal Oswal, Nair, the first woman CEO of HUL, “brings various positive possibilities for the India business. She has 30 years of experience at Unilever, with most of it handling the company’s India portfolio.”

They believe that her successful legacy in the Home Care and B&W portfolios and the massive premiumisation drive that HUL‘s Home Care portfolio has seen under her leadership are indicative of the potential ahead.

They expect the new CEO to “further capitalise on the volume drive with her understanding of Indian consumers and the company’s execution playbook.”

Motilal Oswal on HUL: Growth prioritised

Motilal Oswal highlighted how HUL had “prioritised growth over margins, as in its Q4FY25 earnings call, and revised its EBITDA margin guidance to 22–23% (from 23–24%) to accelerate marketing/promotion budgets.”

They expect the cost impact will be front-ended and the volume pick-up will be gradual. Moreover, the “new CEO can further capitalise on the volume drive with her understanding of Indian consumers and the company’s execution playbook.” Motilal highlighted.

Motilal Oswal on HUL: Tackling competition

The question then is can it help solve HUL’s continued underperformance both in terms of stock performance and business delivery? Motilal Oswal outlines that “The competitive landscape is changing much faster than anyone would have thought a few years back.” The new CEO brings a “hope of recovery, particularly as she has been part of India business for the last three decades.”

The company articulated its new strategy of focusing more on boosting volume growth in the previous quarter, even at the expense of margin compression in the interim. It has created a new P&L structure, with a higher contribution from volume. “It also aims for faster customer acquisition. We hope that this strategy will remain unchanged under the new CEO and that her past experience will bring a more refreshed approach to attaining these objectives,” added Motilal Oswal.