Mumbai: Hindustan Unilever Limited (HUL) is sharpening its strategy around premium products, brand desirability and productivity as India’s fast-moving consumer goods market continues to show resilience despite inflationary pressure, according to Anand Rathi Research’s latest fortnightly digest.
HUL Targets New Growth Areas
HUL is placing greater emphasis on premiumisation, closer consumer segmentation, specialised distribution and digital-first marketing. Liquid detergents, premium beauty products, body washes and whitening oral-care products have been identified as key growth opportunities.
The company has increased the targeted savings under its Growth and Savings programme to 3 percent of turnover from 2 percent earlier.
HUL also revised its medium-term EBITDA margin guidance to 22–24 percent, compared with its previous range of 22.5–23.5 percent. The wider range reflects its focus on balancing investment-led growth with cost discipline and productivity improvements.
FMCG Demand Holds Firm
Data from Bizom and Wordpanel showed that FMCG value growth improved sequentially to 6.8 percent during Q1FY27. Volume growth remained healthy at around 4.5–5 percent.
Rural consumption continued to remain resilient, while urban demand showed signs of catching up. Price increases, reductions in product grammage and cost-saving measures are helping companies manage rising raw-material expenses.
Paint Companies See Healthy FY27
Leading paint manufacturers maintained a positive outlook for FY27 following healthy volume and value growth during the first quarter.
Pricing actions, premiumisation and market-share gains are expected to support performance. Festive demand, backward integration and stronger operating leverage could also aid revenue growth and margins.
ITC Infotech Eyes Reverse Listing
The proposed merger of ITC Infotech with Happiest Minds Technologies could facilitate the reverse listing of ITC Infotech and improve visibility around its valuation.
Although the immediate sum-of-the-parts valuation benefit is modest at nearly Rs 10 per share, the transaction highlights ITC’s continued focus on unlocking portfolio value.
Anand Rathi expects its 16-company coverage universe to record around 10 percent revenue CAGR and 15 percent earnings CAGR over FY26–FY28. Its preferred picks are Marico, GCPL and Asian Paints, with target prices of Rs 990, Rs 1,400 and Rs 3,180, respectively.
