Why HUL Share Price is Rising

Indian stock markets are trading range bound today (7 July). Market sentiment remains cautious due to global uncertainties, especially regarding US tariff policies.

The Sensex is seeing losses of 30 points at 83,395 points. The NSE Nifty index is down 16 points at 25,445 points.

FMCG stocks are outperforming, led by companies like Godrej Consumer and Dabur. IT and metal sectors are under pressure, down around 0.5-0.7%.

The market breadth remained positive. On the NSE, out of about 2,494 stocks traded, 1,438 advanced, 960 declined, and 96 remained unchanged.

One stock that has been gaining over the last few days is Hindustan Unilever (HUL).

Here's why...

#1 Strong Growth Outlook

The management is expecting good growth at HUL in the coming quarters and in FY26.

"HUL is confident of stronger growth in FY26, after delivering a 2% revenue growth in FY25," chairman Nitin Paranjpe said at the company's recent AGM.

This positive outlook has led to good buying in the stock over the last few trading sessions.

#2 Better Sector Performance

The rally over the last few days in the stock is also on account of a sector driven rally. Most of the top stocks from the FMCG sector are gaining on hopes of an improved performance in this result season.

While HUL's stock is up nearly 5%, the Nifty FMCG Index has gained nearly 2.5% in last 3-days. At the time of writing, the index is up almost 1.5% in trade today.

What Next?

In FY25, HUL saw underlying volume growth of just about 2%. However, the expectation is for better volume momentum in FY26. This is due to new products, premiumisation, and expansion in categories like home care and personal care.

The recent price hikes on select products should also reflect in the coming quarters.

The company is also reshaping its portfolio, including the demerger and listing of its ice cream business - Kwality Walls - which may unlock further value.

HUL plans to boost investments to drive volume growth despite margin pressures, anticipating a revival in consumer demand.

Consumer sectors are expected to see good growth this financial year on an annual basis due to the recent income tax cuts, which has increased the disposable income in the hands of consumers.

HUL recently introduced low-unit price packs on popular brands, which should boost volumes. This would also help deepen penetration in rural markets.

The company recently acquired a 90.5% stake in Uprising Science, the parent company of the beauty and personal care brand Minimalist. This acquisition will boost its direct-to-consumer business.

While macroeconomic uncertainties and currency fluctuations remain risks, HUL's strong brand equity and product pipeline provide confidence for steady growth and resilience in FY26.

How Shares of HUL have Performed Recently

Over the last one month, the share price of HUL has gained less than 1% from levels of Rs 2,392 to the current levels of Rs 2,411. Over the past one year, the share price is down about 7%.

The stock hit a 52-week high of Rs 3,034.5 on 23 September 2024. The stock also hit a 52-week low of Rs 2,136 on 4 March 2025.

About HUL

HUL is India's largest fast-moving consumer goods company.

It offers a wide portfolio across over 20 categories including personal care (soaps, shampoos, skin care), home care (detergents, cleaning agents), foods and beverages (tea, coffee, packaged foods, ice cream), and other consumer staples.

Some of its well-known brands are Lifebuoy, Lux, Surf Excel, Dove, Pepsodent, Lakme, Brooke Bond, Knorr, Kissan, and Kwality Wall's. HUL reaches 9 out of 10 Indian households with one or more of its brands every day.

Unilever PLC owns a majority stake in the company.

To know more, check out HUL fact sheet and latest quarterly results. You can also compare HUL with its peers on our website.

HUL vs Godrej Consumer

HUL vs P&G Hygiene

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...