ITC vs HUL: Price targets for 2025, stock returns, technicals and more
ITC shares vs HUL shares: Shares of ITC and HUL hit their record highs in September this year. While ITC stock hit a record high of Rs 528.55 on September 27, HUL shares touched all time high on Rs 3034.50 on September 23, 2024.


- Dec 18, 2024,
- Updated Dec 18, 2024 1:07 PM IST
Shares of ITC Ltd and Hindustan Unilever Ltd (HUL) have disappointed investors this year. While ITC stock gave mild returns of 0.56%, shares of HUL slipped 10.56% in 2024. Both FMCG stocks have seen very less volatility in the last one year. While beta of ITC stood at 0.6, that of HUL stood at 0.3.
Shares of ITC and HUL hit their record highs in September this year. While ITC stock hit a record high of Rs 528.55 on September 27, HUL shares touched all time high on Rs 3034.50 on September 23, 2024.
In terms of returns in the long and short terms, ITC shares are better placed when compared to that of HUL.
Once considered a defensive bet, ITC stock has gained 40% in two years and risen 115% in three years.On the other hand, shares of HUL are down 11.20% in two years and gained just 6.32% in three years.
The ITC stock has a high PE ratio of 28.62. Shares are valued reasonably when compared with PE of the industry. PE ratio of HUL stands at 54.23 against PE of 60.8 for the industry.
However, the stock of the HUL has lagged behind in terms of returns when compared to ITC. HUL stock has lost 17.56% in three months and fallen 4.55% in six months.
ITC shares zoomed 9.58% in six months but fell 7.33% in three months.
In the current trading session, ITC shares were trading on a flat note at Rs 469.85 on BSE. Market cap of the firm stood at Rs 5.87 lakh crore. Total 2.68 lakh shares of the FMCG firm changed hands amounting to a turnover of Rs 12.60 crore on BSE. Market cap of the firm stood at Rs 5.87 lakh crore.
In terms of technicals, the relative strength index (RSI) of ITC stock stands at 46.4, signaling it's trading neither in the overbought zone nor in the oversold zone. ITC shares are trading higher than the 5 day, 10 day, 200 day but lower than the 20 day, 30 day, 50 day, 100 day and 150 day moving averages.
On the other hand, HUL shares were trading 0.18% higher at Rs 2365 against the previous close of Rs 2463.90 on BSE. A total of 0.46 lakh shares of the firm changed hands, amounting to a turnover of Rs 11 crore on the BSE. Market cap of the company rose to Rs 5.86 lakh crore.
In terms of technicals, the relative strength index (RSI) of HUL stock stands at 36.1, signaling it's trading neither in the overbought zone nor in the oversold zone. HUL shares are trading lower than the 5 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.
Here's a look at how ITC and HUL shares are expecetd to perform in the future.
ITC
Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has a buy call on the stock with a target price of Rs 510-530. Stop Loss can be fixed at Rs 450.
"We are observing that prices of ITC have taken support at the 200-days SMA at Rs 259 and have bounced from those levels on the daily charts. At present, the stock is underperforming the benchmark indices. However, the momentum indicator RSI is positively poised. Hence, one can buy the stock at current levels with a stop loss of Rs 450 for a target of Rs 510-530 levels in a couple of weeks," said Vasudeo.
Brokerage Macquarie has a price target of Rs 560 on the ITC stock with an outperform call.
Currently, cigarettes attract 28% GST rate & a compensation cess of 5-36% based on length of cigarette with longest cigarette attracting 36%.
Macquarie said if this levy of a special rate is over and above the existing compensation cess, the brokerage believes ITC will need at least a high single digit price hike to offset this tax increase.
ITC stock is the preferred pick of ICICI Securities.
"Cigarettes volume growth trajectory continues to be stable at 3% despite calibrated price hikes to navigate cost inflation and consumer demand being under pressure. ITC continues to benefit from market share gains for organised players from the illicit cigarettes industry due to: 1) strong deterrent actions by enforcement agencies, leading to significant increase in seizures of illicit cigarettes; and 2) stability in taxes on cigarettes. FMCG had a resilient performance while margins are under pressure due to commodity inflation," said the brokerage.
HUL
Morgan Stanley has maintained an underweight stance with a target price of Rs 2110 on HUL.
The global brokerage said its appreciates the shift in management style from assertive to aggressive. However, its believes fulfilling the plan is a multi-year task.
Commenting on the beauty & wellbeing strategy, the brokerage said it is well-defined and requires strong execution in innovation, GTM & consumer connection Setup
The brokerage said personal care segment is strong on science front but needs brand rebuilding efforts. On food & nutrition, it said growth to be driven by market share gains and profitability.
Motilal Oswal has a buy call on Hindustan Unilever Ltd. with a target price of Rs 3,100.
"Over the long term, HUL targets competitive turnover growth driven by volume (100bp ahead of the market), premiumization, and portfolio transformation in Beauty & Wellbeing (B&W) and Foods. Margins are expected to remain stable with moderate expansion; EBITDA margins stood at 23.8% in 1HFY25 and we model ~24% margins for FY25-26. Management also guides for double-digit EPS growth," said Motilal.
"We model sales/EBITDA/adjusted PAT CAGR of 7%/8%/9% over FY24-27E. We reiterate a BUY rating with a TP of Rs 3,100 (55x Dec’26 EPS) on account of HUVR's superior competitive moats within the consumer staples sector," added the brokerage.
Emkay Global has maintained a buy call but pared its target price to Rs 2,950 from Rs 3,200
Growth ahead should outperform compared to the market, said Emkay adding that HUL remains an execution play.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher said, "The stock has witnessed a decent erosion from the peak of Rs 3,035. It has shown signs of reversal, with the RSI hovering near the highly oversold zone, indicating some improvement. A positive trend reversal is signalling a buy."
"The chart technically looks well-poised with much upside potential visible, and once a decisive breach above the 200-period MA (moving average) at the Rs 2,540 level is confirmed, one can expect a fresh upward move with a target of Rs 2,780, keeping the stop loss of Rs 2,380," said Koothupalakkal.
Shares of ITC Ltd and Hindustan Unilever Ltd (HUL) have disappointed investors this year. While ITC stock gave mild returns of 0.56%, shares of HUL slipped 10.56% in 2024. Both FMCG stocks have seen very less volatility in the last one year. While beta of ITC stood at 0.6, that of HUL stood at 0.3.
Shares of ITC and HUL hit their record highs in September this year. While ITC stock hit a record high of Rs 528.55 on September 27, HUL shares touched all time high on Rs 3034.50 on September 23, 2024.
In terms of returns in the long and short terms, ITC shares are better placed when compared to that of HUL.
Once considered a defensive bet, ITC stock has gained 40% in two years and risen 115% in three years.On the other hand, shares of HUL are down 11.20% in two years and gained just 6.32% in three years.
The ITC stock has a high PE ratio of 28.62. Shares are valued reasonably when compared with PE of the industry. PE ratio of HUL stands at 54.23 against PE of 60.8 for the industry.
However, the stock of the HUL has lagged behind in terms of returns when compared to ITC. HUL stock has lost 17.56% in three months and fallen 4.55% in six months.
ITC shares zoomed 9.58% in six months but fell 7.33% in three months.
In the current trading session, ITC shares were trading on a flat note at Rs 469.85 on BSE. Market cap of the firm stood at Rs 5.87 lakh crore. Total 2.68 lakh shares of the FMCG firm changed hands amounting to a turnover of Rs 12.60 crore on BSE. Market cap of the firm stood at Rs 5.87 lakh crore.
In terms of technicals, the relative strength index (RSI) of ITC stock stands at 46.4, signaling it's trading neither in the overbought zone nor in the oversold zone. ITC shares are trading higher than the 5 day, 10 day, 200 day but lower than the 20 day, 30 day, 50 day, 100 day and 150 day moving averages.
On the other hand, HUL shares were trading 0.18% higher at Rs 2365 against the previous close of Rs 2463.90 on BSE. A total of 0.46 lakh shares of the firm changed hands, amounting to a turnover of Rs 11 crore on the BSE. Market cap of the company rose to Rs 5.86 lakh crore.
In terms of technicals, the relative strength index (RSI) of HUL stock stands at 36.1, signaling it's trading neither in the overbought zone nor in the oversold zone. HUL shares are trading lower than the 5 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.
Here's a look at how ITC and HUL shares are expecetd to perform in the future.
ITC
Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has a buy call on the stock with a target price of Rs 510-530. Stop Loss can be fixed at Rs 450.
"We are observing that prices of ITC have taken support at the 200-days SMA at Rs 259 and have bounced from those levels on the daily charts. At present, the stock is underperforming the benchmark indices. However, the momentum indicator RSI is positively poised. Hence, one can buy the stock at current levels with a stop loss of Rs 450 for a target of Rs 510-530 levels in a couple of weeks," said Vasudeo.
Brokerage Macquarie has a price target of Rs 560 on the ITC stock with an outperform call.
Currently, cigarettes attract 28% GST rate & a compensation cess of 5-36% based on length of cigarette with longest cigarette attracting 36%.
Macquarie said if this levy of a special rate is over and above the existing compensation cess, the brokerage believes ITC will need at least a high single digit price hike to offset this tax increase.
ITC stock is the preferred pick of ICICI Securities.
"Cigarettes volume growth trajectory continues to be stable at 3% despite calibrated price hikes to navigate cost inflation and consumer demand being under pressure. ITC continues to benefit from market share gains for organised players from the illicit cigarettes industry due to: 1) strong deterrent actions by enforcement agencies, leading to significant increase in seizures of illicit cigarettes; and 2) stability in taxes on cigarettes. FMCG had a resilient performance while margins are under pressure due to commodity inflation," said the brokerage.
HUL
Morgan Stanley has maintained an underweight stance with a target price of Rs 2110 on HUL.
The global brokerage said its appreciates the shift in management style from assertive to aggressive. However, its believes fulfilling the plan is a multi-year task.
Commenting on the beauty & wellbeing strategy, the brokerage said it is well-defined and requires strong execution in innovation, GTM & consumer connection Setup
The brokerage said personal care segment is strong on science front but needs brand rebuilding efforts. On food & nutrition, it said growth to be driven by market share gains and profitability.
Motilal Oswal has a buy call on Hindustan Unilever Ltd. with a target price of Rs 3,100.
"Over the long term, HUL targets competitive turnover growth driven by volume (100bp ahead of the market), premiumization, and portfolio transformation in Beauty & Wellbeing (B&W) and Foods. Margins are expected to remain stable with moderate expansion; EBITDA margins stood at 23.8% in 1HFY25 and we model ~24% margins for FY25-26. Management also guides for double-digit EPS growth," said Motilal.
"We model sales/EBITDA/adjusted PAT CAGR of 7%/8%/9% over FY24-27E. We reiterate a BUY rating with a TP of Rs 3,100 (55x Dec’26 EPS) on account of HUVR's superior competitive moats within the consumer staples sector," added the brokerage.
Emkay Global has maintained a buy call but pared its target price to Rs 2,950 from Rs 3,200
Growth ahead should outperform compared to the market, said Emkay adding that HUL remains an execution play.
Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher said, "The stock has witnessed a decent erosion from the peak of Rs 3,035. It has shown signs of reversal, with the RSI hovering near the highly oversold zone, indicating some improvement. A positive trend reversal is signalling a buy."
"The chart technically looks well-poised with much upside potential visible, and once a decisive breach above the 200-period MA (moving average) at the Rs 2,540 level is confirmed, one can expect a fresh upward move with a target of Rs 2,780, keeping the stop loss of Rs 2,380," said Koothupalakkal.