At least five brokerages upgraded Hindustan Unilever Ltd.'s shares following the consumer giant's earnings, which triggered the worst selloff in more than six years on Tuesday. The rating upgrades come as analysts reassess the company's long-term fundamentals despite near-term margin pressures highlighted in the quarterly results.

Brokerage firms cited Hindustan Unilever's strong market position, pricing power, and rural recovery prospects as key reasons for their positive outlook. Several analysts raised price targets while maintaining buy ratings, arguing that Tuesday's sharp decline created an attractive entry point for long-term investors.

The Unilever India subsidiary reported earnings that missed street estimates, with volume growth slowing amid inflationary headwinds. However, management's commentary on sequential improvement and cost-saving initiatives provided confidence to the upgrading firms. The stock's worst day since 2018 saw heavy selling volume before bargain hunters emerged.

Market observers note the divergence between short-term earnings disappointment and long-term structural strengths. The upgrades reflect a consensus that Hindustan Unilever's portfolio resilience and distribution moat remain intact despite cyclical challenges.