Shares of Hindustan Unilever Ltd (HUL) are set for a 18% upside, according to brokerage Motilal Oswal. The FMCG stock's underlying volume growth in Q4 came at 6% YoY (15-quarter high). The Q4 earnings show that growth was boosted by GST benefits and the multiple initiatives undertaken by the company in transforming its product portfolio and channels, said the brokerage. 

Motilal Oswal expects the stock to reach a target price of Rs 2650 in a year, a rally of 18%. 

The brokerage says the company is strengthening omnichannel capabilities. 

The company announced a Rs 2000 crore capex toward premium and high-growth categories and remains optimistic about delivering better performance in FY27 vs FY26. 

"We reiterate our BUY rating on the stock with a TP of INR 2,650 (50x on Mar’28E EPS)," said Motilal Oswal. 

THE FMCG major reported a 21% rise in its March quarter net profit. HUL’s net profit in Q4 rose 21% to Rs 2,994 crore year-on-year with Rs 2,475 crore in the same period a year ago. 

HUL posted a 8.1% rise in its core revenue from operations (sale of products business) to Rs 16,172 crore in the March 2026 quarter compared with Rs 14,955 crore in the same period a year earlier.

Meanwhile, the brokerage said HUL continues to remain focused on driving volume-led revenue growth, even if it comes at the expense of near-term margins. Despite concerns around rising crude prices and macro volatility, HUL believes it is well positioned to navigate the environment through commodity hedges, accelerated cost-saving initiatives, portfolio transformation strategies, and strengthening omnichannel capabilities.