Reuters Market Eye - Nomura has upgraded Hindustan Unilever to "neutral" from "reduce" and raised its target price to 527 rupees from 327 rupees.
Nomura cited structural improvements in the business that will allow Hindustan Unilever to turn a corner and sustain higher valuations than its long-term average in the near-term.
The investment bank added that continued delivery on volume growth will be key, and said lower commodity prices should allow the company to invest in growing its brands and develop its innovation pipeline.
However, Nomura said it was not ready to give a "buy" rating given the company is trading at 31.7 times fiscal 2014 earnings, after gaining sharply since the start of August.
Shares were down 0.53 percent at 529.75 rupees as of 1316 IST.