Shares of FMCG company Hindustan Unilever Ltd rose for a fourth straight day on September 22, rising more than 1.5%, even as the benchmark 30-pack Sensex and the broader Nifty both fell nearly 1%. Shares were quoted at Rs 2,670 on the NSE at 12:30 pm.

On the eve of the holiday, FMCG companies rebounded. They are making big bets on the holiday season by adding to their supply chain, investing in marketing campaigns and lining up new packaging. Management also expects a strong recovery in rural demand.

According to a recent report by Bizom, the value of India’s FMCG market rose 6% in August compared to July, reversing a three-month streak of declines.

Global brokerage firm Nomura expects HUL’s trading volume to grow by 4-5% in the second quarter of fiscal 2023. They have a “buy” rating on the stock with a price target of Rs 2,975.

Macquarie has an “outperform” rating with a target of Rs 3,000. “Our channel checks indicate stable demand. Strong demand should sustain volume growth momentum. In a note, the downside risk to margins is limited,” its analysts said.

Analysts at Sharekhan like this stock as it leads 80% of the portfolio. “Besides that, improved growth prospects and a healthy balance sheet and stable cash flow make it a top pick in the FMCG segment,” the brokerage said. It has a “buy” rating with a target price of Rs 2,850.