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  1. HUL shares jump 5%: Is FMCG stock coming out of the woods? Here's what key fundamental and technical triggers suggest

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HUL shares jump 5%: Is FMCG stock coming out of the woods? Here's what key fundamental and technical triggers suggest

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3 min read | Updated on July 11, 2025, 13:59 IST

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SUMMARY

Hindustan Unilever’s share price is in focus after the company announced a key top management change on Thursday. However, shares saw a renewed momentum for the past few weeks as the company highlighted their changed strategy in the latest annual report, which bolstered the overall investor confidence. The stock is also showing strong momentum on technical charts.

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On a standalone basis, HUL's net profit increased by 3.6% to ₹2,493 crore in Q4 FY25 against ₹2,406 crore in the year-ago period.

On a standalone basis, HUL's net profit increased by 3.6% to ₹2,493 crore in Q4 FY25 against ₹2,406 crore in the year-ago period.

Shares of Hindustan Unilever traded nearly 5% higher on Friday after the company announced a managerial change on Thursday evening. The exchange filing said Priya Nair will be replacing Rohit Jawa as the new CEO and MD of Hindustan Unilever for the next five years. Rohit Jawa step down as CEO and MD on July 31, 2025, to pursue the next chapter in his personal and professional journey, the FMCG major said in a statement.

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Priya Nair, who was previously heading Beauty & Wellbeing, will now be the first woman CEO and MD of the FMCG behemoth. The managerial change cheered investors' sentiment as the company was grappling with multiple headwinds, which proved to be a roadblock for the company. The company struggled with low single-digit volumes across the segments, which led to nearly 2% growth in FY25 sales at ₹60,680 crore.

Fundamental triggers

The Indian FMCG space is undergoing dynamic changes across segments through changing consumer behaviour and demand patterns. Primarily, three key trends are being witnessed in the Indian FMCG space

Premiumisation: Rising disposable income across the urban and rural areas has created a new affluent segment of consumers who are now seeking premium, high-quality, sustainable and personalised products. To address the changing demand for premium products, HUL has stepped up innovation, especially in premium Skin Care, premium Hair Care, Bodywash, Home Care liquids, Condiments and Mini-meals and Prestige. The acquisition of Minimalist, a leading beauty care brand, is in accordance with the strategy.
Digitisation impact: Access to smartphones and social media users has led FMCG companies to explore a new set of audiences. According to HUL's FY25 annual report, India has nearly 900 million internet users and 450 million social media users, which gives access to targeted online marketing. Quick commerce platforms are proving to be a boon for FMCG companies, which are exploiting convenience and adding to new set of demand for FMCG products.
Focusing on core growth: The company’s strategy to increase investments in its core business segment, like beauty and wellness products, by acquiring Minimalist, and demerging the pureit and ice cream business, could prove to be margin accretive for the company. The disposal of the Pureit business could unlock nearly ₹600 crore of value, aiding the overall topline of the company.

Management changes and tweaking of business strategies to address the current changing dynamics of the FMCG industry have improved investor confidence. HUL’s shares have seen renewed momentum with the share price rising nearly 10% in July and 17% from its 52-week low hit in March 2025.

Technical triggers

HINDUNILVR_2025-07-11_12-58-38.webp On technical charts, Hindustan Unilever’s share price has crossed crucial long-term moving averages of 200 EMA and 100 Weekly moving average on daily and weekly charts. This further bolstered investor confidence in the company’s share price.

In addition, changing tax structure, robust monsoon and rate cuts are also key triggers that could boost overall business and FMCG industry confidence going forward. Despite the renewed momentum, all eyes will remain on Q1FY26 earnings and the management commentary for the coming quarters.

Disclaimer: This article is for informational purposes only and must not be considered investment advice from Upstox. Past returns are not indicative of future performance. Please consult with a financial advisor before trading and investing.
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About The Author

WhatsApp Image 2025-01-20 at 11.25.23.jpeg
Rohan Takalkar is a senior writer at Upstox and a seasoned capital markets analyst with around 9 years of experience. He is passionate about writing on equities, global markets, and the economy.

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