Hindustan Unilever Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹6,43,564.79 crore, a PE ratio of 62.25, a debt-to-equity ratio of 0.03, and a return on equity (ROE) of 20.2%. These figures reflect the company’s strong financial health and robust market position.
Content:
- Hindustan Unilever Ltd Overview
- Hindustan Unilever Financial Results
- Hindustan Unilever Financial Analysis
- Hindustan Unilever Company Metrics
- Hindustan Unilever Stock Performance
- Hindustan Unilever Peer Comparison
- Hindustan Unilever Shareholding Pattern
- Hindustan Unilever History
- How To Invest In Hindustan Unilever Ltd Share?
- Hindustan Unilever Limited Fundamental Analysis – FAQs
Hindustan Unilever Ltd Overview
Hindustan Unilever Ltd is a leading Indian consumer goods company offering a wide range of products in categories such as food and beverages, personal care, and home care. The company is renowned for its extensive brand portfolio and market presence.
The company has a market capitalization of ₹6,43,564.79 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading close to its 52-week high of ₹2,812, significantly above its 52-week low of ₹2,170, indicating strong investor confidence. The all-time high of the stock is ₹2,859, while the all-time low is ₹126.
Hindustan Unilever Financial Results
The company demonstrated strong financial growth from FY 22 to FY 24, with total income increasing from ₹52,446 crore to ₹61,896 crore and profit before tax rising from ₹13,115 crore to ₹15,474 crore. The company maintained a stable OPM and improved EPS over the years.
- Revenue Trend: Total income increased from ₹52,446 crore in FY 22 to ₹60,580 crore in FY 23, and further to ₹61,896 crore in FY 24, indicating robust revenue growth.
- Equity and Liabilities: Hindustan Unilever’s equity and liabilities structure showcases financial stability and strategic management. The company effectively balances equity financing and debt to ensure sustainability and capital flexibility for growth initiatives.
- Profitability: Operating Profit Margin (OPM) slightly decreased from 25% in FY 22 to 23% in FY 23, and further to 24% in FY 24, reflecting consistent operational efficiency.
- Earnings per Share (EPS): EPS increased from ₹37.79 in FY 22 to ₹43.07 in FY 23, and further to ₹43.74 in FY 24, indicating strong profit growth per share.
- Return on Net Worth (RoNW): RoNW improved from 18.08% in FY 22 to 19.83% in FY 23, and further to 19.84% in FY 24, indicating better returns on shareholders’ equity and increasing profitability.
- Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹13,115 crore in FY 22 to ₹14,661 crore in FY 23, and further to ₹15,474 crore in FY 24, showcasing robust financial health and management.
Hindustan Unilever Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 61,896 | 60,580 | 52,446 |
| Expenses | 47,233 | 46,431 | 39,589 |
| Operating Profit | 14,663 | 14,149 | 12,857 |
| OPM % | 24 | 23 | 25 |
| Other Income | 817 | 448 | 214 |
| EBITDA | 15,474 | 14,661 | 13,115 |
| Interest | 334 | 114 | 106 |
| Depreciation | 1,216 | 1,137 | 1,091 |
| Profit Before Tax | 13,930 | 13,346 | 11,874 |
| Tax % | 26.16 | 23.98 | 25.16 |
| Net Profit | 10,282 | 10,143 | 8,892 |
All values in ₹ Crores.
Hindustan Unilever Company Metrics
Hindustan Unilever’s market cap is ₹6,43,564.79 crore, with a book value of ₹218 per share and face value of ₹1. It has a debt of ₹1,484 crore, EBITDA of ₹15,474 crore, dividend yield of 1.53%, asset turnover of 0.82, and EPS of ₹44.0.
Market Capitalization: Represents the total market value of Hindustan Unilever’s outstanding shares, amounting to ₹6,43,564.79 crore.
Book Value: Hindustan Unilever has a book value of ₹218 per share, representing the net asset value of the company divided by the number of outstanding shares.
Face Value: The face value of Hindustan Unilever’s shares is ₹1.00, which is the nominal value of each share as stated on the share certificate.
Asset Turnover: Hindustan Unilever has an asset turnover ratio of 0.82, indicating the company’s efficiency in using its assets to generate revenue.
Total Debt: Hindustan Unilever has a significant debt of ₹1,484 crore, reflecting its financial leverage and obligations. Managing this debt effectively is crucial for the company’s long-term financial stability and growth.
EBITDA: Hindustan Unilever’s EBITDA increased from ₹13,115 crore in FY 22 to ₹14,661 crore in FY 23, and further to ₹15,474 crore in FY 24, indicating improving operational performance and profitability over these years.
Dividend Yield: Hindustan Unilever has a dividend yield of 1.53%, reflecting the annual dividend income relative to its current share price.
Earnings per Share (EPS): Hindustan Unilever has an EPS of ₹44.0, indicating the amount of profit attributed to each outstanding share of common stock, reflecting the company’s profitability for its shareholders.
Hindustan Unilever Stock Performance
Hindustan Unilever delivered steady returns on investment with 8.22% over 1 year, 4.47% over 3 years, and 8.31% over 5 years, highlighting consistent profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 8.22 |
| 3 Years | 4.47 |
| 5 Years | 8.31 |
Example: If an investor had invested ₹1,000 in Hindustan Unilever’s stock:
1 year ago, their investment would be worth ₹1,082.
3 years ago, their investment would have grown to ₹1,045.
5 years ago, their investment would have increased to approximately ₹1,083.
This highlights consistent profitability for investors.
Hindustan Unilever Peer Comparison
Hindustan Unilever has a CMP of ₹2741.4, a market cap of ₹6,44,245.86 crore, and a P/E of 62.25. Peers like Colgate-Palmolive, P&G Hygiene, and Gillette India show varied metrics with different market caps, P/E ratios, and returns, indicating diverse performance and valuations in the industry.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| Hind. Unilever | 2741.4 | 644245.86 | 62.25 | 20.24 | 43.98 | 8.22 | 27.24 | 1.53 |
| Colgate-Palmoliv | 3457.35 | 94033.59 | 66.5 | 74.52 | 51.99 | 76.12 | 96.8 | 1.39 |
| P & G Hygiene | 16999.7 | 55212.36 | 74.09 | 80.63 | 229.57 | 10.43 | 100.63 | 0.62 |
| Gillette India | 7681.3 | 25085.11 | 64.74 | 38.49 | 118.91 | 40.65 | 52.01 | 0.59 |
Hindustan Unilever Shareholding Pattern
In FY 2024, the shareholding pattern shows promoters holding steady at 61.9%, FIIs decreasing to 12.67% from 14.36% in FY 2023, DIIs increasing to 13.28% from 11.57%, and retail and others maintaining a slight change at 12.16%.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 61.9 | 61.9 | 61.9 |
| FII | 12.67 | 14.36 | 13.66 |
| DII | 13.28 | 11.57 | 11.61 |
| Retail & others | 12.16 | 12.15 | 12.83 |
All values in %
Hindustan Unilever History
Hindustan Unilever Limited (HUL) began its journey in 1933 as Lever Brothers India Limited, marking the start of its long-standing presence in the Indian market. The company initially focused on selling imported products such as Lifebuoy, Sunlight, and Pears soaps, which quickly gained popularity.
In 1956, Hindustan Lever Limited (HLL) was formed as a result of the merger between Lever Brothers, Hindustan Vanaspati Manufacturing Company, and United Traders Limited. This merger consolidated its position as a major player in the Indian consumer goods industry, expanding its product range to include detergents and personal care items.
The 1990s saw HLL embracing liberalization and economic reforms in India, leading to significant growth and expansion. The company diversified its product portfolio further, introducing brands like Fair & Lovely, Lakme, and Brooke Bond, while also strengthening its distribution network across the country.
In 2007, Hindustan Lever Limited was renamed Hindustan Unilever Limited to align more closely with its parent company, Unilever. This rebranding signaled a renewed focus on sustainability and innovation, with HUL launching several eco-friendly initiatives and products to meet the evolving needs of Indian consumers.
Today, HUL stands as one of India’s largest fast-moving consumer goods (FMCG) companies, with a diverse portfolio spanning beauty and personal care, home care, foods, and refreshments. Its commitment to sustainable growth, combined with a deep understanding of Indian consumers, continues to drive its success in the competitive FMCG market.
How To Invest In Hindustan Unilever Ltd Share?
Investing in Hindustan Unilever Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Hindustan Unilever Ltd shares and place your buy order.
Hindustan Unilever Limited Fundamental Analysis – FAQs
Hindustan Unilever Ltd’s fundamental analysis shows a market capitalization of ₹6,43,564.79 crore, a PE ratio of 62.25, and a return on equity (ROE) of 20.2%, indicating strong financial health and market position.
Hindustan Unilever Ltd has a market capitalization of ₹6,43,564.79 crore, reflecting the total market value of its outstanding shares.
Hindustan Unilever Limited is a leading Indian consumer goods company, specializing in a wide range of products including food, beverages, cleaning agents, personal care items, and water purifiers.
Hindustan Unilever is owned by Unilever, a British-Dutch multinational company that holds the majority stake in the Indian subsidiary.
Main shareholders of Hindustan Unilever include the parent company Unilever, foreign institutional investors (FIIs), domestic institutional investors (DIIs), and retail investors.
Hindustan Unilever operates in the consumer goods industry, producing and marketing a variety of household, personal care, and food products.
To invest in Hindustan Unilever Ltd shares, open a brokerage account, deposit funds, and purchase shares through a stock exchange like the BSE or NSE.
Determining if Hindustan Unilever is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. Hindustan Unilever’s PE ratio of 62.25 suggests that the stock might be overvalued compared to its earnings, indicating high investor expectations.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
