PL Capital has upgraded Hindustan Unilever (HUL) to a “buy” rating, identifying consumer stocks as a key portfolio shift despite ongoing inflation concerns. Amisha Vora, Chairman and Managing Director at the firm, highlighted that the sector offers an attractive combination of valuation and growth at current levels, with Tata Consumer Products also meriting a strong position.
Assessing the broader July-September quarter of 2026 (Q2FY27) earnings season, Vora observed that topline performance across the automobile, consumption, chemical, pharmaceutical and capital expenditure sectors has largely exceeded expectations. Raw material costs have constrained margins in certain pockets, signalling future inflation worries. Amid recent market corrections, power and shipbuilding equities remain safe and growing spaces for investors.
Among individual performers, Apar Industries and RR Kabel completely beat street expectations.
On specific frontline stocks, Trent‘s recent earnings showed a welcome improvement in earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins. “The EBITDA margin improvement shows that the economies of scale have started coming in,” the managing director noted, pointing to the retailer’s rapid pace of store additions.
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PL Capital upgrades HUL to Buy; Amisha Vora sees value in consumer stocks
Coal India, currently trading around ₹390, also presents a strong case as both a defensive and growth play. A large portion of the miner’s pricing remains fixed, providing stability, while e-auction premiums supply the critical level for profit growth. Volume expansion is expected to accelerate due to rising power demand and recent policy measures. Infrastructure improvements on the ground have successfully resolved the company’s historical challenges with coal transportation and evacuation.
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