Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500696 | NSE: HINDUNILVR

Fundamental Analysis of Hindustan Unilever Ltd

Basic Stock Data

Last Updated: July 24, 2024, 11:40 pm

Market Cap 6,38,396 Cr.
Current Price 2,717
High / Low2,812/2,170
Stock P/E61.8
Book Value 218
Dividend Yield1.55 %
ROCE27.2 %
ROE20.2 %
Face Value 1.00
PEG Ratio8.81

Data Source: screener.in

Competitors of Hindustan Unilever Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ambica Agarbathies Aroma & Industries Ltd 43.7 Cr. 25.543.2/23.2 59.00.00 %4.44 %3.55 % 10.0
Ador Multi Products Ltd 17.3 Cr. 37.046.0/29.1 23.60.00 %37.6 %28.3 % 10.0
Kaya Ltd 770 Cr. 582702/267 1740.00 %80.4 %% 10.0
Jyothy Labs Ltd 18,663 Cr. 508554/29052.4 49.20.69 %27.0 %21.2 % 1.00
JHS Svendgaard Laboratories Ltd 171 Cr. 21.839.5/15.5 21.70.00 %1.66 %2.37 % 10.0
Industry Average37,811.40 Cr2,831.36124.95185.680.50%38.89%27.72%6.25

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales12,43312,19413,04613,43913,76714,62415,14415,59715,21515,49615,62315,56715,210
Expenses9,3919,2739,82010,03010,46611,22211,66511,90311,64311,83211,82811,90211,675
Operating Profit3,0422,9213,2263,4093,3013,4023,4793,6943,5723,6643,7953,6653,535
OPM %24%24%25%25%24%23%23%24%23%24%24%24%23%
Other Income1233951-7136121807240146178184309
Interest111328273828282929508891105
Depreciation266260281272278281272293291286297313320
Profit before tax2,8882,6872,9683,1033,1213,2143,2593,3793,4923,4743,5883,4453,419
Tax %24%22%26%26%26%26%18%27%26%26%26%27%25%
Net Profit2,1902,1002,1852,3002,3072,3912,6702,4812,6012,5562,6572,5082,561
EPS in Rs9.308.929.289.789.8110.1311.3410.5311.0710.8711.3010.6810.89

Last Updated: July 10, 2024, 2:19 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 2:19 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales27,00429,23431,97232,18633,16235,54539,31039,78347,02852,44660,58061,896
Expenses22,78424,47526,56026,27626,83428,04630,43029,93035,40239,58946,43247,237
Operating Profit4,2204,7595,4125,9106,3287,4998,8809,85311,62612,85714,14814,659
OPM %16%16%17%18%19%21%23%25%25%25%23%24%
Other Income1,1237921,247486606353322432170219447817
Interest26411817352633118117106114334
Depreciation2512963223534325205651,0021,0741,0911,1371,216
Profit before tax5,0665,2156,3206,0266,4677,3068,6049,16510,60511,87913,34413,926
Tax %24%24%31%31%31%28%30%26%25%25%24%26%
Net Profit3,8393,9564,3764,1514,4905,2276,0606,7567,9998,89210,14310,282
EPS in Rs17.7118.2420.1719.1820.6824.0927.9731.1734.0337.7943.0743.74
Dividend Payout %104%71%74%83%82%83%78%80%119%90%91%96%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)3.05%10.62%-5.14%8.17%16.41%15.94%11.49%18.40%11.16%14.07%1.37%
Change in YoY Net Profit Growth (%)0.00%7.57%-15.76%13.31%8.25%-0.48%-4.45%6.91%-7.23%2.90%-12.70%

Growth

Compounded Sales Growth
10 Years:8%
5 Years:10%
3 Years:10%
TTM:1%
Compounded Profit Growth
10 Years:11%
5 Years:11%
3 Years:8%
TTM:0%
Stock Price CAGR
10 Years:15%
5 Years:9%
3 Years:5%
1 Year:5%
Return on Equity
10 Years:32%
5 Years:24%
3 Years:20%
Last Year:20%

Last Updated: July 25, 2024, 4:18 am

Balance Sheet

Last Updated: July 10, 2024, 2:19 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital216216216216216216216216235235235235
Reserves2,6493,3213,8116,3576,5287,0657,6518,01347,43948,82650,06950,983
Borrowings25464317727709901,0091,0431,2191,484
Other Liabilities9,20210,17110,3598,0438,68510,58110,66311,92420,05720,40221,55425,797
Total Liabilities12,09213,75414,43014,79315,70617,86218,62920,15368,74070,50673,07778,499
Fixed Assets2,4312,7462,8213,2584,4194,5284,7155,47951,44351,47352,67853,744
CWIP2223735164082294614065977451,3131,1321,025
Investments2,2522,8383,0252,5923,7942,8732,7161,2552,7093,5212,8824,625
Other Assets7,1867,7978,0678,5357,26410,00010,79212,82213,84314,19916,38519,105
Total Assets12,09213,75414,43014,79315,70617,86218,62920,15368,74070,50673,07778,499

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 3,6053,8183,2924,1715,1856,0595,8007,6239,1639,0489,99115,469
Cash from Investing Activity 63-475138-282-1,173-1,063-4381,791-1,228-1,728-1,484-5,324
Cash from Financing Activity -4,147-2,960-3,462-3,864-4,214-4,975-5,390-6,819-9,309-8,015-8,953-10,034
Net Cash Flow-480383-3325-20221-282,595-1,374-695-446111

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-21.00-42.00-38.00-172.00-271.007.00-91.009.0010.0011.0013.0013.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days131312141213171114161918
Inventory Days838677756765596566655549
Days Payable164170148156164185166176163145123129
Cash Conversion Cycle-67-72-60-67-85-107-90-101-83-64-50-62
Working Capital Days-49-54-52-24-32-37-29-31-29-20-137
ROCE %130%147%139%112%91%103%116%117%38%24%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters61.90%61.90%61.90%61.90%61.90%61.90%61.90%61.90%61.90%61.90%61.90%61.90%
FIIs15.11%15.45%14.71%13.66%13.30%14.05%14.32%14.36%14.48%13.90%13.65%12.67%
DIIs10.75%10.48%10.85%11.61%12.20%11.72%11.50%11.51%11.47%11.90%12.31%13.21%
Government0.00%0.00%0.00%0.00%0.00%0.04%0.04%0.04%0.04%0.04%0.04%0.04%
Public12.24%12.17%12.53%12.83%12.60%12.32%12.23%12.17%12.09%12.26%12.11%12.19%
No. of Shareholders7,95,4488,25,66611,37,49713,61,50612,75,55411,39,75411,18,43111,27,98210,96,27011,76,41111,32,96512,05,416

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF16,113,47323594.035,293,2902024-07-24204.41%
SBI S&P BSE Sensex ETF11,499,6972.342565.245,293,2902024-07-24117.25%
ICICI Prudential Value Discovery Fund5,293,2902.771180.645,293,2902024-07-240%
UTI Nifty 50 ETF4,606,51721027.465,293,2902024-07-24-12.97%
UTI S&P BSE Sensex ETF4,123,6582.34919.865,293,2902024-07-24-22.1%
ICICI Prudential Balanced Advantage Fund4,023,9641.58897.535,293,2902024-07-24-23.98%
SBI Blue Chip Fund3,600,0001.77802.965,293,2902024-07-24-31.99%
Mirae Asset Large Cap Fund3,569,5112.09796.165,293,2902024-07-24-32.57%
Kotak Equity Arbitrage Fund - Regular Plan3,030,3001.55675.895,293,2902024-07-24-42.75%
ICICI Prudential India Opportunities Fund2,963,5423.476615,293,2902024-07-24-44.01%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)43.7443.0737.7934.0331.17
Diluted EPS (Rs.)43.7443.0737.7934.0331.17
Cash EPS (Rs.)48.9448.0042.4838.6135.92
Book Value[Excl.RevalReserv]/Share (Rs.)218.82214.99208.88202.9538.18
Book Value[Incl.RevalReserv]/Share (Rs.)218.82214.99208.88202.9538.18
Revenue From Operations / Share (Rs.)263.39257.79223.17200.12184.18
PBDIT / Share (Rs.)65.8562.3955.8151.2248.58
PBIT / Share (Rs.)60.6757.5551.1746.6543.94
PBT / Share (Rs.)59.2856.7950.5345.1342.47
Net Profit / Share (Rs.)43.7743.1737.8434.0431.28
NP After MI And SOA / Share (Rs.)43.7343.0637.7834.0231.24
PBDIT Margin (%)25.0024.2025.0025.5926.37
PBIT Margin (%)23.0322.3222.9223.3023.85
PBT Margin (%)22.5022.0322.6422.5523.05
Net Profit Margin (%)16.6116.7416.9517.0016.98
NP After MI And SOA Margin (%)16.6016.7016.9217.0016.96
Return on Networth / Equity (%)20.0620.1118.0916.7782.00
Return on Capital Employeed (%)21.7222.1420.2919.0187.58
Return On Assets (%)13.0913.8412.5911.6233.48
Asset Turnover Ratio (%)0.810.830.731.042.03
Current Ratio (X)1.661.411.381.281.32
Quick Ratio (X)1.341.061.010.951.03
Inventory Turnover Ratio (X)4.664.734.254.864.44
Dividend Payout Ratio (NP) (%)91.4483.5884.68110.2077.00
Dividend Payout Ratio (CP) (%)81.7775.1475.4197.1567.04
Earning Retention Ratio (%)8.5616.4215.32-10.2023.00
Cash Earning Retention Ratio (%)18.2324.8624.592.8532.96
Interest Coverage Ratio (X)46.33128.61123.73102.8788.92
Interest Coverage Ratio (Post Tax) (X)31.7890.5585.2571.4260.02
Enterprise Value (Cr.)525697.75596944.25477659.75566787.00491304.40
EV / Net Operating Revenue (X)8.499.859.1112.0512.35
EV / EBITDA (X)33.9740.7236.4247.0946.82
MarketCap / Net Operating Revenue (X)8.619.939.1812.1512.48
Retention Ratios (%)8.5516.4115.31-10.2022.99
Price / BV (X)10.4111.959.8111.9860.32
Price / Net Operating Revenue (X)8.619.939.1812.1512.48
EarningsYield0.010.010.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 2,763.61

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 1.72% compared to the current price 2717

Intrinsic Value: 2,957.36

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 8.85% compared to the current price 2717

Last 5 Year EPS CAGR: 7.01%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 87.00%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -30.25, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -75.67, which is a positive sign.
  4. The company has higher reserves (20,226.00 cr) compared to borrowings (451.83 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (40.42 cr) and profit (8.25 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hindustan Unilever Ltd:
      1. Net Profit Margin: 16.61%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 21.72% (Industry Average ROCE: 38.89%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ✗ ROE%: 20.06% (Industry Average ROE: 27.72%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 31.78
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 1.34
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. ✓ Stock P/E: 61.8 (Industry average Stock P/E: 124.95)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. ✗ Total Debt / Equity: N/A
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company

    Hindustan Unilever Ltd. is a Public Limited Listed company incorporated on 17/10/1933 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L15140MH1933PLC002030 and registration number is 002030. Currently Company is involved in the business activities of Manufacture of filtering and purifying machinery or apparatus for liquids and gases. Company’s Total Operating Revenue is Rs. 51193.00 Cr. and Equity Capital is Rs. 235.00 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Personal CareUnilever House, B D Sawant Marg, Mumbai Maharashtra 400099levercare.shareholder@unilever.com
    http://www.hul.co.in
    Management
    NamePosition Held
    Mr. Nitin ParanjpeChairman & Non-Exe.Director
    Mr. Rohit JawaManaging Director & CEO
    Mr. Ritesh TiwariExecutive Director & CFO
    Mr. Dev BajpaiExecutive Director
    Mr. O P BhattIndependent Director
    Mr. Leo PuriIndependent Director
    Mr. Sanjiv MehtaIndependent Director
    Ms. Kalpana MorpariaIndependent Director
    Ms. Ashu SuyashIndependent Director
    Mr. Ranjay GulatiIndependent Director
    Ms. Neelam DhawanIndependent Director
    Mr. Tarun BajajIndependent Director

    FAQ

    What is the latest fair value of Hindustan Unilever Ltd?

    The latest fair value of Hindustan Unilever Ltd is ₹2763.61.

    What is the Market Cap of Hindustan Unilever Ltd?

    The Market Cap of Hindustan Unilever Ltd is 6,38,396 Cr..

    What is the current Stock Price of Hindustan Unilever Ltd as on 25 July 2024?

    The current stock price of Hindustan Unilever Ltd as on 25 July 2024 is 2,717.

    What is the High / Low of Hindustan Unilever Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Hindustan Unilever Ltd stocks is 2,812/2,170.

    What is the Stock P/E of Hindustan Unilever Ltd?

    The Stock P/E of Hindustan Unilever Ltd is 61.8.

    What is the Book Value of Hindustan Unilever Ltd?

    The Book Value of Hindustan Unilever Ltd is 218.

    What is the Dividend Yield of Hindustan Unilever Ltd?

    The Dividend Yield of Hindustan Unilever Ltd is 1.55 %.

    What is the ROCE of Hindustan Unilever Ltd?

    The ROCE of Hindustan Unilever Ltd is 27.2 %.

    What is the ROE of Hindustan Unilever Ltd?

    The ROE of Hindustan Unilever Ltd is 20.2 %.

    What is the Face Value of Hindustan Unilever Ltd?

    The Face Value of Hindustan Unilever Ltd is 1.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hindustan Unilever Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE