HUL share ended the day up by more than 2%, today, on likely GST rate cut boost

Hindustan Unilever Ltd (HUL) share ended the day, today, 20^th August, up by 2.43% at Rs 2,668. Nifty 50 index ended the day today, up by 0.28%. The stock has gained 7.32% in the past 5 days. This, after the government announced that GST rates will be cut down by Diwali. Cutting down of GST rates means that prices of a number of goods of HUL will come down for consumers. This in turn is expected to give a boost to demand for the products of the company.

Year-to-date HUL share has gained 14.90% in 2025. Year-to-date, Nifty 50 index has gained 5.51%. Much of the outperformance over the benchmark index that the stock has achieved in 2025 has come in the past 5 days.

Market Snapshot

On August 20, 2025, at 02:15 PM, shares of HUL were trading strongly at 2672.00, up by 68.00 or 2.61%. The shares opened at ₹2,600.00 and hit a high of ₹2,679.75 before touching a low of ₹2,590.10. Its volume-weighted average price (VWAP) stood at ₹2,653.87.

Expected GST Reforms

Prime Minister, in his address on August 15, 2025, hinted at upcoming GST reforms. These reforms are expected to support the local economy and bring a consumption boost. As the government is aiming to ease affordability, particularly in rural and semi-urban markets, through the reforms, the FMCG sector will gain greatly from it. It is this expectation of tax reform which is the major reason behind the continous increase in the share price of HUL.

Outlook for Investors

While HUL has been a preferred option amongst investors in the FMCG sector, its valuation right now is steep, with the PE ratio nearing 58. As near-term volatility could persist because of the same, investors should monitor rural consumption trends, margin growth, and implementation of tax reforms before making fresh entries.

Hindustan Unilever Ltd is one of India’s largest and fastest-moving consumer goods companies. The company has a wide portfolio, including personal care, home care, and food and has a pan-India reach. It is known for iconic brands like Dove, Surf Excel, and Horlicks, with a proven track record of driving growth through innovation and distribution strength.

Disclaimer : This content is only for informational purpose. It does not make any decision to act or invest.

Source : NSE/BSE