Archive · 5 Dec 2025
HUL Demerger: Kwality Walls Valuation and Market Outlook
Hindustan Unilever (HUL) is splitting its ice cream business into a new company called Kwality Walls (KWIL).
A brokerage firm, Nuvama, thinks KWIL will start trading in February 2026 and be worth around Rs 50-55 per share.
This is less than HUL's current value because KWIL is smaller.
The ice cream market in India is growing fast, and a lower tax on ice cream will help KWIL sell more.
HUL will keep its other businesses and is expected to make more profit without the ice cream business.
Nuvama still likes HUL and thinks its price will go up to Rs 3,200.
KWIL will be a separate company focused only on ice cream, which should help it grow.
Kwality Walls (KWIL) is expected to list in February 2026 with a valuation of Rs 50-55 per share, at a 5x EV/sales multiple.
Nuvama estimates KWIL's valuation to be Rs 1,200 crore to Rs 1,500 crore, contributing Rs 50-55 to HUL's current market price of Rs 2,404.
The Indian ice cream market is projected to grow at 15% annually from 2024 to 2031, with improving cold-chain networks and rising consumption.
The GST on ice cream has been reduced from 18% to 5%, which is expected to boost the shift from unorganized to organized brands.
Post-demerger, HUL's EBITDA margin is expected to improve by 50-60 basis points, with KWIL operating as a standalone company focused on ice cream.
- Who
- Hindustan Unilever (HUL) and its demerged ice cream unit, Kwality Walls (KWIL)
- What
- Valuation and market outlook of KWIL post-demerger
- When
- Expected listing in February 2026
- Where
- India (BSE and NSE)
- Why
- To provide focused management and strategy for the ice cream business, benefiting from category tailwinds and GST support
- Expected KWIL Listing
- February 2026
- Expected EV/Sales Multiple
- 5x
- Expected KWIL Valuation
- Rs 1,200 crore to Rs 1,500 crore
- HUL Current Market Price
- Rs 2,404
- KWIL's Contribution to HUL Market Price
- Rs 50 to 55
- HUL's Target Price
- Rs 3,200
- Indian Ice Cream Market Growth
- 15% annually (2024-2031)
- GST on Ice Cream
- Reduced from 18% to 5%
Sources
HUL Demerger Record Date today: 5 things every investor need to know
HUL Kwality Walls demerger: Stock signals mild weakness; check value of ice cream biz
What’s the right price for Kwality Walls after HUL demerger? 3 reasons why Nuvama pegs ice-cream biz at Rs 50-55
