HUL GROWTH STRATEGY DRAWS POSITIVE, SHARES EDGE LOWER

Hindustan Unilever Ltd. (HUL) shares traded moderately lower on Monday after the FMCG major unveiled its new growth strategy at its Capital Markets Day. While analysts largely viewed the plan positively, some flagged concerns around higher investments and a wider operating margin range. HUL shares were down 0.55%. The decline came amid weakness in the broader market. The stock has fallen around 15% so far in 2026, significantly underperforming the Nifty 50, which has declined 8.6% over the same period. HUL's market capitalisation currently stands at just under ₹4.64 lakh crore. As part of its strategy, HUL plans to increase capital expenditure to around 3% of turnover, compared with approximately 2% over the past five years. The company intends to deploy the additional investment toward premiumisation, market development and emerging consumption opportunities. HUL expects productivity improvements and portfolio-mix initiatives to generate around 500 basis points of savings, which would help fund the higher investments. The company has set a medium-term EBITDA margin target of 22-24%. The FMCG major also plans to expand into high-growth categories through extensions of its existing brands, leveraging brands from parent company Unilever, as well as through bolt-on acquisitions. Management indicated that underlying sales growth has improved sequentially over the past four reporting periods, rising from 3% to 10%, signalling improving momentum across the business.