Roy expects Hindustan Unilever (HUL) to post volume growth of over 3% in the April–June 2025 quarter (Q1FY26), compared to 2% in the January-March period (Q4FY25). But despite this improvement, HUL remains lower in Nuvama’s FMCG preference list.
The firm sees better prospects in food-focused companies like Britannia and Nestle India, given faster expected growth in those categories.It also flagged ongoing challenges for HUL, including weak performance from the Horlicks portfolio and rising competition in the direct-to-consumer space. While HUL’s acquisition of Minimalist is seen as a positive, margin pressures may persist in the near term.
Still, Nuvama believes HUL could surprise on the upside in the July–September quarter, helped by a correction in palm oil prices and a 30% fall in coffee prices over the past month. The stock could return 10–15% over the next six to twelve months, it said.
HUL shares are currently trading at ₹2,313.00 as of 9:49 am on the NSE.
Britannia is expected to deliver high single-digit sales growth in the first quarter, supported by margin gains from lower input costs. Nuvama is also optimistic about Bikaji’s performance, and expects steady momentum to continue.
In the alcohol segment, the brokerage prefers United Breweries over United Spirits, citing stronger beer demand in Maharashtra. It expects United Spirits to report weak numbers in Q1 due to regulatory changes in the state.
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