HINDUNILVR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of Hindustan Unilever Ltd (HINDUNILVR), with a numeric rating and strategic investment guidance. I see you're focused on long-term value and timing an entry, so I’ve weighed profitability, capital efficiency, valuation, and business durability to give you a clear verdict.

📊 Fundamental Analysis of Hindustan Unilever Ltd

🔍 Core Financials

Profitability

PAT Qtr: ₹2,839 Cr vs ₹2,510 Cr — healthy growth (↑10.3%).

EPS: ₹46.1 — strong earnings base.

ROE: 20.6%, ROCE: 27.6% — excellent capital efficiency.

Leverage & Liquidity

Debt-to-equity: 0.03 — virtually debt-free, highly resilient.

Dividend Yield: 1.66% — consistent and attractive for long-term holders.

Cash Flow

Operating cash flow for FY25: ₹11,886 Cr

1

— robust and stable.

Dividend payout remains strong, with ₹24/share declared in June 2025

2

.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 57.4 Slightly above industry PE of 53 — premium valuation

P/B Ratio ~12.4 High, but justified by brand strength and ROE

PEG Ratio 10.8 Very high — growth not justifying price

Intrinsic Value ~₹2,400–₹2,500 Slightly below current price — mildly overvalued

🧴 Business Model & Competitive Edge

Segment Leadership: Dominates Indian FMCG space with brands like Dove, Lux, Horlicks, and Kissan.

Moat: Deep distribution network, brand loyalty, and pricing power.

Growth Drivers

Rural recovery and premiumization

3

.

Strategic acquisitions (Minimalist, Oziva) to tap into high-growth wellness segments

3

.

GST cuts on personal care and packaged foods expected to boost demand

4

.

📈 Technical & Entry Guidance

Current Price: ₹2,587

DMA 50/200: ₹2,550 / ₹2,457 — trading above both, indicating strength.

RSI: 48.7 — neutral zone.

MACD: 9.29 — mild bullish momentum.

🎯 Entry Zone

Ideal Buy Range: ₹2,500–₹2,550 — near DMA support.

Stop Loss: ₹2,450

Target: ₹2,950–₹3,050 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, brand moat, and consistent cash flows.

Buy on dips: Especially near ₹2,500 zone.

Growth Triggers: GST tailwinds, rural demand, and wellness segment expansion.

⭐ Fundamental Rating

4.6

Let me know if you’d like a peer comparison with Nestlé India or Dabur next!

1

www.moneycontrol.com

2

Moneycontrol

3

The Financial Express

4

News18

Edit in a page