Hindustan Unilever is in focus as it has received a major go-ahead from BSE and NSE for the demerger of the company’s Ice Cream Business. Hindustan Unilever’s Ice Cream Business, which includes popular brands like Kwality Wall’s, Cornetto, and Magnum, operates in a unique segment that differs significantly from its core FMCG Operations.
For the Past 5 years, the Company’s Stock has been in a range of 850 points with an Upper range of around Rs. 2,900 and a Lower range of around Rs. 2,050, and the 5-year return for the Stock stands at just 16 percent. The demerger could be a chance for its long-term shareholders to unlock the fair value of HUL’s Stock.
Demerger Update
HUL has received the go-ahead from both the BSE & NSE for its planned restructuring of the Company. The BSE has issued a letter stating it has no adverse observations, and the NSE has issued a no-objection statement.
These statements have been issued to HUL because it wants to separate its ice cream business and turn it into a new company called Kwality Wall’s (India) Limited (KWIL). These approvals were important steps before the company could move forward with the demerger.
HUL’s Ice Cream category is a high-growth business with iconic brands like Kwality Wall’s, Cornetto, and Magnum, which operate in an attractive segment. Rohit Jawa, CEO & MD of HUL, states that “ The demerger will unlock fair value for HUL shareholders and give them the flexibility to stay invested in Ice Cream’s growth journey.”
When the demerger is complete, one equity share of KWIL will be allotted for every one Equity share held in HUL, and upon demerger and listing of KWIL, the Entire shareholding of KWIL will be held directly by shareholders of HUL. The Demerger is highly likely to be completed by FY26
As of March 2025, data Promoter owns 61.90 percent of the total company, followed by 15.48 percent held by DIIs, 10.62 percent held by FIIs, and public shareholders stand at 11.93 percent.
About the Company
Hindustan Unilever Limited (HUL) is one of India’s largest fast-moving consumer goods (FMCG) companies, with a legacy dating back to 1933. Headquartered in Mumbai, HUL is a subsidiary of the British-Dutch multinational Unilever, which holds a majority stake in the company.
HUL has a diverse product portfolio that spans across home care, beauty and personal care, and foods and refreshments. Some of its most iconic and trusted brands include Surf Excel, Dove, Lux, Lifebuoy, Lipton, Brooke Bond, Knorr, and Fair & Lovely (now Glow & Lovely).
The company reported a 3.02 percent YoY increase in revenue from Rs. 15,210 Crore in Q4FY24 to Rs. 15,670 Crore in Q4FY25. On a QoQ basis, the company reported a decrease of 0.93 percent in revenue from Rs. 15,818 Crore in the previous quarter.
Their Net profit saw a decrease of 3.35 percent YoY from Rs. 2,561 Crore to Rs. 2,475 Crore for the same period. On a QoQ basis, the company reported a decrease of 17.19 percent in Net profit from Rs. 2,989 Crore in the previous quarter.
Written By Abhishek Das
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