Analysts noted that domestic consumer demand remained muted in Q4, in line with past two quarters. This is even as rural demand saw some pick-up on a low base.
December quarter typically is a seasonally strong quarter marked with festivals and the onset of winter. However, this time it was characterised by uneven monsoon, delayed winter and slow growth in demand for mass products compared with the premium end of the shopping basket.
HUL target price: There appears to be a risk that FY25E EPS growth could also be muted, said Nirmal Bang. It cut the HUL target to Rs 2,670 from Rs 2,700 earlier, as it rolled forward its estimates to value HUL at 50x December 25 EPS.
FMCG major HUL posted a profit growth of a mere 0.6% YoY to Rs 2,519 crore while missing the ETNow poll estimate of Rs 2,724 crore. Revenue dropped 0.3% YoY to Rs 15,188 crore and also trailed estimates of Rs 15,533 crore.