⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HINDUNILVR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | HINDUNILVR | Market Cap | 5,01,838 Cr. | Current Price | 2,136 ₹ | High / Low | 2,660 ₹ |
| Stock P/E | 46.9 | Book Value | 208 ₹ | Dividend Yield | 2.01 % | ROCE | 27.6 % |
| ROE | 20.6 % | Face Value | 1.00 ₹ | DMA 50 | 2,295 ₹ | DMA 200 | 2,339 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | 0.06 % | PAT Qtr | 2,730 Cr. | PAT Prev Qtr | 2,621 Cr. |
| RSI | 30.3 | MACD | -56.3 | Volume | 26,68,959 | Avg Vol 1Wk | 21,67,062 |
| Low price | 2,048 ₹ | High price | 2,660 ₹ | PEG Ratio | 8.83 | Debt to equity | 0.03 |
| 52w Index | 14.4 % | Qtr Profit Var | 3.74 % | EPS | 63.8 ₹ | Industry PE | 42.7 |
📊 Core Financials
- Quarterly PAT rose from ₹2,621 Cr. to ₹2,730 Cr. (~4% sequential growth, ~3.74% YoY growth).
- ROE: 20.6% → strong profitability.
- ROCE: 27.6% → excellent capital efficiency.
- Debt-to-equity: 0.03 → virtually debt-free, strong financial health.
- Dividend Yield: 2.01% → consistent shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 46.9 vs Industry PE 42.7 → trading at a premium.
- P/B Ratio: 10.3 (Current Price ₹2,136 / Book Value ₹208) → expensive relative to assets.
- PEG Ratio: 8.83 → valuation stretched compared to earnings growth.
- Intrinsic Value: Current price above fair value, limited near-term upside.
🏢 Business Model & Competitive Advantage
- Hindustan Unilever (HUL) is India’s largest FMCG company with a diversified portfolio across food, beverages, personal care, and household products.
- Business model relies on mass-market consumption, brand loyalty, and distribution strength.
- Competitive advantage: Strong brand equity, wide product range, and unmatched distribution network.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹2,050–₹2,100 (close to 52-week low, RSI at 30.3 indicates oversold zone).
- Long-Term Holding: Suitable for investors seeking stable compounding in FMCG sector, though valuations remain stretched.
✅ Positive
- Strong profitability with ROE of 20.6% and ROCE of 27.6%.
- Debt-free balance sheet ensures financial stability.
- Consistent dividend yield of 2.01% supports long-term investors.
⚠️ Limitation
- High P/E ratio (46.9) compared to industry average.
- PEG ratio (8.83) suggests valuation stretched relative to growth.
- FII holdings decreased (-0.08%), showing slight reduction in foreign investor confidence.
📉 Company Negative News
- Stock trading below 50 DMA (₹2,295) and 200 DMA (₹2,339), indicating bearish momentum.
- MACD at -56.3 signals weak technical trend.
📈 Company Positive News
- Quarterly PAT increased from ₹2,621 Cr. to ₹2,730 Cr.
- DII holdings increased (+0.06%), reflecting domestic institutional support.
🌐 Industry
- FMCG industry PE at 42.7, slightly lower than HUL’s 46.9, showing relative overvaluation.
- Industry growth driven by rising consumption, premiumization, and rural demand expansion.
🔎 Conclusion
- HUL is fundamentally strong with excellent profitability, brand strength, and debt-free balance sheet.
- Valuations are stretched, limiting near-term upside, but long-term prospects remain solid due to FMCG sector resilience.
- Best strategy: Accumulate near ₹2,050–₹2,100 and hold long-term to benefit from stable compounding in India’s consumption growth story.