Published: 07th July 2025
By: Value Research
Hindustan Unilever’s stock rose 3% on July 7, 2025. The reason? A proposed demerger of its ice cream business.
The board has approved a plan to separate HUL’s ice cream division. Investors hope this will unlock value and improve business focus.
Even in volatile markets, HUL stays strong. Its stability makes it a go-to pick for cautious investors.
– ROE: 21.2% – ROCE: 29.4% – Dividend yield: 2.2% – EPS: ₹45.3 Steady cash flows support strong shareholder payouts.
– P/E: 52.5× – P/B: 11.3× That’s premium pricing. The stock isn’t cheap — future upside depends on growth.
– Overall: 3/5 – Quality: 10/10 – Growth: 6/10 – Valuation: 4/10 – Momentum: 3/10 Great quality, but modest growth expectations.
The demerger’s success depends on execution. If done right, shareholders could benefit — if not, the hype may fade.
HUL remains a trusted, defensive stock. The demerger could boost returns — But buying at a high valuation always carries risk.
This is not investment advice. Please consult a financial advisor before making stock decisions.
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