Check Before You Invest : Hindustan Unilever Ltd

Snapshot

Q.1 Which industry/sub-sector does Hindustan Unilever Ltd belong to?

Hindustan Unilever Ltd belongs to the FMCG sector, operating specifically within the Household & Personal Products segment.

Q.2 Is Hindustan Unilever Ltd a good quality company?

Hindustan Unilever Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Hindustan Unilever Ltd undervalued or overvalued?

Hindustan Unilever Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Hindustan Unilever Ltd a good buy now?

Hindustan Unilever Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Hindustan Unilever Ltd?

Hindustan Unilever Ltd revenue growth is 2% for FY-2025, which is below its 5-year CAGR of 9.67%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Hindustan Unilever Ltd?

Hindustan Unilever Ltd Return on capital employed is 29.43% for FY-2025, which is in line with its 5-year historical median of 28.06%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Hindustan Unilever Ltd?

Hindustan Unilever Ltd Return on Asset is 13.48%, which is in line with its 5-year historical median of 13.57%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Hindustan Unilever Ltd?

Hindustan Unilever Ltd Return on equity is 21.21% for FY-2025, which is in line with its 5-year historical median of 20.42%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Hindustan Unilever Ltd?

Hindustan Unilever Ltd Cash conversion cycle is -48 days, in line with its 5-year historical median of -48 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.92	0.93
ROE	21.21	20.42
ROCE	29.43	28.06
Cash Conversion Cycle	-48 days	-48 days

Q.6 Gross Profit margin of Hindustan Unilever Ltd?

Hindustan Unilever Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.2% for FY-2025, which is in line with its 5-year median of 21.5%, indicating stable margins.

Q.7 Operating Profit Margin of Hindustan Unilever Ltd?

Hindustan Unilever Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 23.53% for FY-2025, which is in line with its 5-year median of 23.69% indicating stable margins.

Q.8 Net Profit Margin of Hindustan Unilever Ltd?

Hindustan Unilever Ltd Net Profit Margin is 16.91% for FY-2025, is in line with with its 5-year median of 16.91%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	21.2	21.5
Operating Profit Margin	23.53	23.69
Net Profit Margin	16.91	16.91

Q.9 Debt to Equity ratio of Hindustan Unilever Ltd?

Hindustan Unilever Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.19, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Hindustan Unilever Ltd?

Hindustan Unilever Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hindustan Unilever Ltd?

Promoters hold 61.90% of the Hindustan Unilever Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hindustan Unilever Ltd vs industry peers?

Hindustan Unilever Ltd revenue CAGR is 9.67%, compared to the industry median CAGR of 8.69%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	2	8.7
Gross Profit Growth	2.2	8.1
Operating Profit Growth	1.3	7.7
Net Profit Growth	3.8	7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.92	0.91
ROE	21.21	17.77
ROCE	29.43	23.38
Cash Conversion Cycle (days)	-48.02	-21

Valuation & price assessment

Q.1 Stock return of Hindustan Unilever Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 10.2% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	10.2%	-1.4%	-3.5%	-3.1%

Q.3 Valuation ratios of Hindustan Unilever Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	35.16	58.41	44.10
Price to Book	10.85	11.37	3.36
Price to Sales	8.29	9.44	4.62
EV to EBITDA	33.25	37.06	23.47

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