HINDUNILVR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | HINDUNILVR | Market Cap | 5,28,870 Cr. | Current Price | 2,251 ₹ | High / Low | 2,660 ₹ |
| Stock P/E | 48.7 | Book Value | 210 ₹ | Dividend Yield | 1.91 % | ROCE | 28.1 % |
| ROE | 22.1 % | Face Value | 1.00 ₹ | DMA 50 | 2,236 ₹ | DMA 200 | 2,302 ₹ |
| Chg in FII Hold | -0.61 % | Chg in DII Hold | 0.65 % | PAT Qtr | 2,766 Cr. | PAT Prev Qtr | 2,730 Cr. |
| RSI | 52.2 | MACD | 36.7 | Volume | 47,39,789 | Avg Vol 1Wk | 23,62,050 |
| Low price | 2,022 ₹ | High price | 2,660 ₹ | PEG Ratio | 17.7 | Debt to equity | 0.03 |
| 52w Index | 35.8 % | Qtr Profit Var | 9.21 % | EPS | 65.7 ₹ | Industry PE | 43.2 |
Positive
- Strong ROE (22.1%) and ROCE (28.1%) highlight excellent efficiency.
- Low debt-to-equity ratio (0.03) ensures financial stability.
- EPS of ₹65.7 reflects consistent profitability.
- Dividend yield of 1.91% provides steady income.
- Quarterly PAT growth of 9.21% shows earnings resilience.
- Stock trading above 50 DMA (₹2,236) and 200 DMA (₹2,302), confirming technical support.
Limitation
- High P/E ratio (48.7) compared to industry average (43.2), suggesting overvaluation.
- PEG ratio of 17.7 indicates stretched valuation relative to growth.
- Current price (₹2,251) closer to lower range of 52-week band, limiting upside.
- RSI at 52.2 and MACD (36.7) show neutral momentum.
- Decline in FII holdings (-0.61%) signals reduced foreign investor confidence.
Company Negative News
- Weak foreign institutional sentiment with reduced FII stake.
- Valuation multiples remain elevated compared to peers.
Company Positive News
- Quarterly PAT improved to ₹2,766 Cr. from ₹2,730 Cr.
- DII holdings increased (+0.65%), reflecting domestic institutional support.
- Consistent dividend payouts enhance shareholder trust.
Industry
- FMCG sector trading at premium valuations (Industry P/E 43.2).
- Sector growth driven by rising consumer demand and brand loyalty.
- Hindustan Unilever’s competitive advantage lies in its strong brand portfolio, distribution reach, and market leadership.
Conclusion
Hindustan Unilever demonstrates strong fundamentals with efficiency, profitability, and dividend support. However, valuations remain stretched and foreign investor sentiment has softened.
Entry Zone: Attractive accumulation range between ₹2,200–₹2,250.
Long-Term Guidance: Suitable for investors seeking stability and exposure to FMCG with strong fundamentals. Expect moderate returns with potential upside tied to sector growth and brand strength.
Would you like me to also prepare a peer benchmarking overlay HTML (comparing HUL with peers like Nestle India, Dabur, and ITC) so you can see relative valuation and efficiency metrics side by side?