HUL shares tumble 7% in trade; here's key trigger behind today's fall

Hindustan Unilever (HUL) shares have slipped 7 per cent on the BSE, logging an intra-day low at ₹2,289 per share. The selling pressure on the counter came on the record date for HUL’s ice cream business demerger. 

 

At 10:30 AM, HUL’s share price was trading 2.18 per cent lower at ₹2,371.05 per share on BSE. In comparison, the BSE Sensex was up 0.21 per cent at 85,442.08.

 

The company has a total market capitalisation of ₹5,58,145.4 crore. Its 52-week high was at ₹2,779.7, and its 52-week low was at ₹2,136.    CATCH STOCK MARKET LIVE UPDATES TODAY

HUL’s ice cream business demerger details

The fast-moving consumer goods major HUL had set December 5, 2025, as the record date for the spin-off of its ice cream business (Kwality Wall’s). The scheme of arrangement between HUL and Kwality Wall’s came into effect on December 1, 2025.

 

 

On November 6, 2025, the National Company Law Tribunal (NCLT) sanctioned the scheme of arrangement between HUL and Kwality Wall's. 

 

“Accordingly, the Board noted that, in terms of the definition of ‘Effective Date’ in Clause 1.9 of Part I of the Scheme, the Scheme will come into effect from December 1, 2025, being the first calendar date of the month,” the filing read. 

 

There will be no change in the shareholding structure of the demerged entity, as the share entitlement ratio has been set at 1:1.

 

Nuvama Institutional Equities believes HUL’s ice cream business, given its lower margins and smaller scale, will likely be valued at a lower multiple than the core franchise. It estimates that the ice cream business accounts for roughly ₹50–55 of HUL's current share price (around ₹2,400). HUL currently trades at about 9 times its enterprise value to sales (EV/sales).

 

The brokerage expects Kwality Wall’s stock to list in February at a likely valuation of around 5 times enterprise  value to sales (EV/sales). 

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According to Nuvama, the demerger will give existing HUL shareholders direct ownership in a pure-play ice cream company with annual revenue of around ₹2,000 crore, a strong 15–20 per cent compound annual growth rate (CAGR) potential, and a portfolio of iconic brands such as Magnum, Cornetto and Kwality Wall’s.