HUL Share Price in Focus as Company’s Valuation Drops Lower Than Unilever: What’s Going On?

The HUL share price was one of the focus stocks on Friday’s trading session. Hindustan Unilever(HUL), is a key player in India’s FMCG (fast-moving consumer goods) market. But it is no longer shining as brightly as it once did. Compared to its UK-based parent, Unilever PLC, the company’s valuation has dropped sharply in recent months.

At 11.55 AM, HUL share price was down 1.10% and was trading at ₹2,299.70.

A Shrinking Premium

As of April 24, 2025, HUL’s market value was US$64 billion—less than 40% of Unilever PLC’s US$161.2 billion. Just a few months ago, HUL was valued at nearly 70% of its parent. This fall is mainly due to two reasons:

1. Poor stock performance – HUL’s share price has dropped 13% in 2024 and has been flat this year.
2. Currency impact – The Indian rupee has weakened by 4.4% against the US dollar since 2022, while the euro has gained 18.7%.

HUL Share Price Trends Tell the Story

Unilever’s stock is now just 8% below its 2019 high, while HUL is still 23% below its peak of ₹3,035, which it hit in September 2024. HUL shares even fell by 4% in a single day after disappointing Q4 results—a record drop in 6 months.

Why the Slowdown?

The FMCG sector in India is facing tough times. Inflation and slower urban demand are hurting sales volumes. HUL, once seen as a “safe” stock, is struggling to grow. As a result, its valuation premium over its parent has shrunk from over 200% to 169%.

Currently, HUL trades at a high 48 times its one-year forward earnings, while Unilever trades at just 18 times. Although Indian subsidiaries often command high premiums, HUL’s advantage seems to be fading.

India Still Matters to Unilever

Despite the slowdown, India is still important for Unilever. In 2024, the country made up US$7.4 billion—around 11.2%—of Unilever’s total revenue. Unilever PLC also holds a 47.4% direct stake in HUL.

Conclusion: Can HUL Regain Its Edge?

While HUL remains a strong brand, investors are now cautious. To recover, it must boost volumes, handle inflation, and rebuild market confidence.

Read more on: HUL Q4 FY25 Results: Net Profit Drops 3.7% YoY, Declares ₹53 Total Dividend for FY25

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