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The market loves a good story. And this week, Hindustan Unilever (HUL) gave investors just that. The stock surged over 4 per cent to Rs 2,515 on Friday morning (July 11, 2025) after the FMCG giant announced Priya Nair as its next MD & CEO, making her the first woman to take the top job at HUL.
But the leadership change wasn’t the only thing driving the rally. There’s growing chatter that HUL could spin off its fast-growing beauty and wellness business, unlocking value in a way investors love: the classic demerger pop.
Why the stock rallied
- Leadership shuffle: Priya Nair, a company veteran and current global head of beauty and wellbeing at Unilever, takes charge from August. Investors are betting her consumer-first thinking could sharpen HUL’s growth engine.
- Demerger rumours: HUL’s beauty and wellness business, currently bundled within the larger portfolio, may soon be spun off. If that happens, it could unlock better valuation multiples.
A giant in your grocery basket
If you’ve used Surf Excel, Dove, Lifebuoy or Bru, you’ve used an HUL product. The company, majority-owned by global giant Unilever, is India’s largest listed FMCG player with a Rs 5.7 lakh crore market cap. Its portfolio spans home care, personal care, food and digital-first brands. In short, it’s the bluest of blue chips.
Below is a table summarising the company’s fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 5.7 lakh crore |
| P/E ratio | 53.2 |
| P/B ratio | 11.5 |
| EPS | Rs 45.3 |
| ROE | 21.2 per cent |
| ROCE | 29.4 per cent |
| Dividend yield | 2.2 per cent |
| Book value | Rs 210.2 |
Value Research Online ratings
- Overall: 3/5
- Quality: 10/10
- Growth: 6/10
- Valuation: 4/10
- Momentum: 2/10
The bottom line
In a market that's rewarding turnaround stories and capital-efficient compounders, HUL’s current narrative has both. But with the stock already baking in a lot of optimism, future gains will depend on how the new CEO delivers, and whether the demerger story moves from buzz to boardroom.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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