Brokerage firm Jefferies has given a ‘buy’ rating to Hindustan Unilever Ltd (HUL), stating that the fast-moving consumer goods (FMCG) industry continues to see sequential recovery in terms of volume growth.

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Jefferies has set a price target of Rs 2,650 for the stock.

The note states: “The company’s discretionary and out-of-home portfolio was accelerating, while the health and hygiene portfolio has been decelerating. Due to a surge in input price (palm/crude oil), HUL had to implement product price hikes, which are impacting the overall volume growth.”

The note also adds that the contribution of realization to growth should rise even as volume growth remains a key focus.

A couple of weeks ago, the company, which manufactures Glow & Lovely and Dove among other skincare products, decided to eliminate the word ‘normal’ from advertising and packaging of all its personal and beauty care products, as part of its efforts to demolish stereotypes. The word ‘normal’ is widely used in skin and hair care products.

(Edited by : Anshul)

First Published:Mar 23, 2021 2:54 PM IST