HUL shares down by more than 1% today

Hindustan Unilever Limited (HUL) shares are down today. At 2:30 p.m. IST, 14^th January, 2026, the stock is down by 1.96%, trading at Rs 2,342.60. Nifty 50 index is down by 0.31% at this time.  In the past 5 days, HUL shares have lost around 2.54%. On January 8^th HUL had received a Rs 1,600 crore tax demand notice from Income Tax department.  The company has said  that it will challenge the order in court.

The stock gained at the start of the year after many investors wanting exposure to FMCG stocks shifted from ITC to HUL and other FMCG stocks. ITC stocks saw heavy selling after government imposed higher excise duty on cigarettes at the start of the year.

HUL shares have underperformed in the past 1 year

In the past one year HUL shares have lost 0.73%. Nifty 50 index has gained 10.68% in this period. HUL shares have underperformed the Nifty 50 index by more than 11% in the past one year. HUL is India’s biggest FMCG company. But the company has been seeing slowdown in sales growth in the post-Covid period. In FY 25 the company’s sales growth stood at just 2%. Demand slowed down especially in rural areas as wage growth declined and unemployment increased as an after effect of Covid lockdowns. Rural demand showed some signs of recovery in 2025. Cutting down of GST rates by Government last year may give some further boost to the sales of the company this year.

HUL is also facing increased competition from many new brands from many new companies. Rising commodity prices has also put downward pressure on the profit margin of the company.

HUL shares are currently trading at 12-month trailing price-to-earnings (P/E) ratio of 50.55. Stocks that make up Nifty FMCG index are trading at an average P/E ratio of around 40.74. HUL stock currently has a weight of 17.91% in Nifty FMCG index. HUL shares are trading at a higher P/E multiple than many of its industry peers.

Geopolitical risk has increased. USA and President Trump are considering military strike on Iran. During times of economic uncertainty many investors prefer FMCG stocks. They are considered to be less cyclical and more immune to economic shocks resulting from geopolitical risks.

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

Source: NSE, HUL