Is HUL Stock Near A Breakout? Analyst Flags Crucial Level Ahead Of Q4 Results

HUL is gaining attention on analysts’ radar, with Q4 results due Thursday. SEBI-registered analyst Rohit Mehta highlights key resistance at ₹2,700 and valuation concerns despite improving fundamentals.

Hindustan Unilever (HUL) is seeing renewed interest from Dalal Street, with the stock gaining nearly 7% over the past month. 

On Wednesday, global brokerage UBS named HUL among its top stock picks in anticipation of a rebound in the consumer sector, pointing to improved prospects after a year of subdued growth across FMCG names.

Data on Stocktwits India shows that retail sentiment has turned ‘bullish’ on the stock from ‘neutral’ a week ago, with high message volumes. 

Ahead of its fourth quarter (Q4) earnings, which are due on Thursday, analysts and investors are watching for signs of a turnaround in one of India’s most prominent consumer companies.

SEBI-registered analyst Rohit Mehta shared a detailed note on Stocktwits highlighting the bigger picture for HUL. The shareholding pattern shows domestic institutional investors (DIIs) raising their holdings from 14.67% to 15.48%, hinting at the rising conviction in the stock’s long-term prospects.

Mehta points out that HUL remains fundamentally sound, backed by a nearly debt-free balance sheet and a consistent dividend payout ratio of 92.2%. 

However, he cautions that valuations remain steep, with the stock trading at 11.1x its book value. Additionally, long-term growth has been underwhelming, with just 9.5% sales growth over the last five years — a figure that may concern growth-oriented investors.

On the technical front, Mehta highlights several critical levels that traders and investors should watch closely. He sees immediate resistance at ₹2,700 and that a breakout above this level could signal renewed short-term strength in the stock.

Further up, the all-time high zone of ₹3,035 is a significant supply area and marks a potential long-term breakout trigger. 

On the downside, he expects the stock to find support at ₹2,300 — a zone that has recently served as a base — and between ₹2,100 and ₹2,150, a historically strong demand zone that could cushion any corrective moves.

HUL stock has gained 4% year-to-date (YTD).

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