The Market Capitalisation of Hindustan Unilever (HUL) reached 67% of its parent company Unilever on October 4. HUL’s Market Capitalisation affected $77 billion as compared to Unilever’s $115 billion, an Economic Times reported.

Unilever’s Market Capitalisation has deteriorated in the past five years, while that of HUL has doubled. Unilever’s m-cap moved its peak of $180 billion in October 2017. According to experts, the report mentions that HUL’s share price soared on the back of increasing rural demand and dropping raw materials prices. The demand for FMCG has also increased due to the constant festive season in India. HUL is among the companies having sincere rural penetration in India. The company’s shares have been outperforming other companies in the FMCG sector. In the last quarter of Q1FY23, HUL’s shares jumped 19%, whereas the FMCG sector rose 7%. Unilever holds 62% in HUL.

Nomura’s recent report mentions that HUL has outperformed its peers as it has given consumers an improved price-value equation, notwithstanding high inflation. Nearly 71% of analysts at Bloomberg gave a ‘buy’ rating to HUL shares, while 21% gave a ‘hold’ rating. Only 8% enquired the investors to ‘sell’ HUL’s stocks. In May, Unilever Global Chief Executive Alan Jope said that the demand for its products in India might soon outshine that of the US.

“An inexpressible story is a digital innovation that is trendy in India, how we run our supply chain, route to the market invention, digital innovation, some of the marketing programs done there, and I hope that what India will be, as it will be an inspiration of digital innovation and a powerhouse commercially,” Jope told media.