HINDUNILVR - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🧼 Investment Analysis: HINDUNILVR (Hindustan Unilever Ltd.)

Investment Rating: 3.9

📌 Fundamental Highlights

ROCE (27.8%) and ROE (20.7%) reflect strong operational and capital efficiency — core strengths of consistent compounders.

EPS: ₹45.3 with modest Qtr Profit Var (2.61%) indicates steady but slow earnings growth.

Debt-to-equity of 0.03 points to an exceptionally clean balance sheet.

Dividend Yield of 1.75% adds some income stability — good for defensive investors.

📉 Valuation & Price Trend Insights

P/E of 55.3 is significantly above the industry PE of 42.1, hinting at rich valuation.

PEG Ratio of 10.3 reveals extreme overvaluation relative to earnings growth — limits near-term upside.

Currently hovering near both 50-DMA and 200-DMA, showing consolidation and lack of clear directional momentum.

RSI (55.9) and MACD (25.6) suggest neutral-to-mild bullish trend.

🎯 Ideal Entry Zone: ₹2,250 – ₹2,350 This range offers a valuation buffer and aligns with past support levels — ideal for long-term accumulation.

🧭 Strategy for Existing Investors

If you're already holding, here's how to navigate forward

📅 Holding Period: 5–7 years — HUL is a structural compounder in FMCG with wide economic moat.

🔍 Monitoring Metrics: Watch PEG ratio normalization, consistent EPS growth, and margin expansion.

💸 Exit Strategy

Partial profit booking near ₹2,950–₹3,000 if valuations remain elevated.

Full exit if growth decelerates further and PEG stays above 7 for multiple quarters.

Otherwise, maintain holding if fundamentals stay intact and consumer sentiment rebounds.

HUL is a marathon stock, not a sprint. Would you like a head-to-head breakdown with peers like Nestlé India or Dabur to fine-tune your strategy? I’d be happy to pull that together for you.

Edit in a page