Hindustan Unilever (HUL) stock plunged 3 percent on Friday after the FMCG giant’s muted Q3 performance fell short of expectations amid mounting economic uncertainty.
HUL reported net profit grew a mere 0.55% year-over-year to Rs 2,519 crore last quarter, widely missing analyst forecasts of Rs 2,678 crore. The weak results coupled with declining volume recovery prompted brokerages to downgrade target prices despite HUL’s market dominance.
The Fast Moving Consumer Goods leader has shed over 2 percent in early trading today, extending losses since yesterday’s earnings. HUL faces pressure from rampant inflation and slowing rural demand as consumers tighten belts.
With consumer staples proving recession-resistant no more, HUL’s anaemic growth underscores the broadening pressure on India’s economy. The Bellwether stock’s slide signals jittery sentiment around slowing earnings and consumer spending in 2023.
As macro headwinds persist, HUL’s fortunes may continue drifting even as it remains an FMCG giant.