Hindustan Unilever (HUL) rose 1.4% in early trading on Tuesday, but still underperformed the broader Indian market. The consumer goods giant’s shares have been under pressure in recent weeks, largely due to concerns over its debt levels and the potential impact of the country’s economic slowdown on its business. Despite the small gain, HUL’s stock has fallen 14% over the past month, mirroring the broader market’s weakness. The company’s revenue growth has slowed down, and it has faced intense competition in some of its key categories, including personal care and food. Additionally, the rival drug and cosmetics business, Marico, has also been gaining traction. HUL’s profitability has also been hit by rising raw material costs and intense competition, prompting investors to take a cautious approach. As a result, the company’s market capitalization has fallen to around 2.5 trillion rupees from 3.5 trillion rupees in 2022, highlighting its underperformance in recent times.
Hindustan Unilever shares climb on Tuesday, lagging behind broader market gains.
by newsworm | Dec 3, 2024 | FMCG, Hindustan lever, Marico