Hindustan Unilever market cap drops by ₹33,539 crore as shares fall over 5% after disappointing Q2 results

Shares of Hindustan Unilever Ltd. (HUL) witnessed a significant drop of 5.70%, falling by ₹151.50 to trade at ₹2,507.80 on the NSE as of 10:00 AM on October 24. This sharp decline followed the company’s underwhelming Q2 FY25 earnings report, where it posted a 4% year-on-year decline in net profit to ₹2,612 crore, despite a modest 2% increase in revenue.

The drop in the company’s stock price led to a substantial loss in market capitalization. HUL’s market cap fell from ₹5,89,230.50 crore to ₹5,55,690.92 crore, translating into a staggering ₹33,539 crore wiped off in market value.

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Stock price details:

  • Open: ₹2,647.00
  • High: ₹2,647.00
  • Low: ₹2,503.25
  • Previous Close: ₹2,659.30

Key Financial Results:

  • Net Profit: ₹2,612 crore, down 4% YoY
  • Revenue: ₹14,597 crore, up 2% YoY

Investors have reacted negatively to the results, particularly concerned about the decline in profit despite a slight revenue increase. The company’s results reflect the challenges it faces in maintaining profitability amid rising costs and economic uncertainty. This reaction is in line with market sentiments, which were already cautious ahead of the earnings announcement.

HUL’s management remains confident in its long-term growth strategy, citing efforts to optimize operations and maintain brand strength. However, the immediate market response underscores investor concerns over the company’s near-term profitability.

This significant fall has caused a notable dent in HUL’s market standing, especially given its prior status as one of the top-performing FMCG stocks. As HUL continues to navigate through these challenges, all eyes will be on its ability to recover in the upcoming quarters and regain investor confidence.