⚠ 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 - Swing Trade Analysis with AI Signals

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Rating: 3.8

Last Updated Time : 20 Mar 26, 12:29 pm

Swing Trade Rating: 3.8

Stock Code HINDUNILVR Market Cap 4,87,886 Cr. Current Price 2,077 ₹ High / Low 2,660 ₹
Stock P/E 45.6 Book Value 208 ₹ Dividend Yield 2.07 % ROCE 27.6 %
ROE 20.6 % Face Value 1.00 ₹ DMA 50 2,287 ₹ DMA 200 2,336 ₹
Chg in FII Hold -0.08 % Chg in DII Hold 0.06 % PAT Qtr 2,730 Cr. PAT Prev Qtr 2,621 Cr.
RSI 25.6 MACD -61.8 Volume 22,09,394 Avg Vol 1Wk 22,35,326
Low price 2,048 ₹ High price 2,660 ₹ PEG Ratio 8.59 Debt to equity 0.03
52w Index 4.76 % Qtr Profit Var 3.74 % EPS 63.8 ₹ Industry PE 42.0

📊 HINDUNILVR shows strong fundamentals but weak short-term technicals. The RSI at 25.6 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-61.8) and price trading below both the 50 DMA (₹2,287) and 200 DMA (₹2,336) reflect bearish sentiment. Fundamentals remain solid with ROCE (27.6%), ROE (20.6%), and consistent PAT growth (+3.74%). Valuation is stretched with a P/E of 45.6 compared to industry P/E of 42.0, and PEG ratio (8.59) suggests limited growth relative to valuation.

💡 Optimal Entry Price: ₹2,050–₹2,080, near the recent low of ₹2,048.

📈 Exit Strategy (if already holding): Consider exiting around ₹2,280–₹2,300 (near 50 DMA resistance) unless momentum strengthens further.

✅ Positive

  • Strong ROCE (27.6%) and ROE (20.6%) indicate efficient capital use.
  • Quarterly PAT growth from ₹2,621 Cr. to ₹2,730 Cr. (+3.74%).
  • Dividend yield of 2.07% adds investor appeal.
  • Low debt-to-equity ratio (0.03) shows financial stability.

⚠️ Limitation

  • High P/E (45.6) compared to industry average (42.0).
  • PEG ratio of 8.59 suggests limited growth potential.
  • Stock trading below both 50 DMA and 200 DMA reflects short-term weakness.

📉 Company Negative News

  • FII holdings declined slightly (-0.08%), showing reduced foreign investor confidence.
  • Weak technical indicators (RSI, MACD, DMA trend) limit short-term upside.

📈 Company Positive News

  • DII holdings increased slightly (+0.06%), showing domestic institutional support.
  • Quarterly profit growth (+3.74%) reflects earnings stability.
  • EPS of ₹63.8 supports valuation strength.

🏭 Industry

  • FMCG sector remains resilient with steady demand.
  • Industry P/E at 42.0 makes HINDUNILVR slightly overvalued (P/E 45.6).

🔎 Conclusion

HINDUNILVR is fundamentally strong with consistent earnings and financial stability but faces short-term technical weakness. It may be suitable for swing trading if entered near ₹2,050–₹2,080, with a target around ₹2,280–₹2,300. Traders should monitor RSI recovery and volume trends before committing heavily.

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