Hindustan Unilever Ltd (HINDUNILVR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Nestle India

ITC

Godfrey Phillips

Gillette India

Dabur India

Britannia Inds.

P&G Hygiene

Tata Consumer

Hind. Unilever

Godrej Consumer

Colgate-Palmoliv

Why is Hindustan Unilever Ltd ?

Poor long term growth as Operating profit has grown by an annual rate 7.12% of over the last 5 years

Flat results in Dec 25

INVENTORY TURNOVER RATIO(HY) Lowest at 14.01 times
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 4,442.00 cr
DEBTORS TURNOVER RATIO(HY) Lowest at 14.16 times

With ROE of 21.8, it has a Expensive valuation with a 9.9 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.69%, its profits have risen by 13.9% ; the PEG ratio of the company is 3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.69% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hind. Unilever for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hind. Unilever

-8.69%

-0.47

18.63%

Sensex

-5.47%

-0.43

12.65%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.06%

EBIT Growth (5y)

7.12%

EBIT to Interest (avg)

73.29

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.14

Tax Ratio

23.59%

Dividend Payout Ratio

116.96%

Pledged Shares

Institutional Holding

26.46%

ROCE (avg)

30.49%

ROE (avg)

19.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.91

EV to EBIT

35.16

EV to EBITDA

31.94

EV to Capital Employed

11.27

EV to Sales

7.38

PEG Ratio

2.95

Dividend Yield

2.09%

ROCE (Latest)

31.87%

ROE (Latest)

21.82%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

ROCE(HY)

Highest at 28.68%

PAT(Q)

At Rs 3,770.66 cr has Grown at 41.9% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 3,788.00 cr.

EPS(Q)

Highest at Rs 28.11

-8What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 14.01 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 4,442.00 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 14.16 times

PBT LESS OI(Q)

Lowest at Rs -1,129.00 cr.

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Here's what is working for Hind. Unilever

Profit After Tax (PAT) - Quarterly

At Rs 3,770.66 cr has Grown at 41.9% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2,657.44 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 3,788.00 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 3,770.66 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 28.11

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Hind. Unilever

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -1,129.00 cr has Fallen at -134.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 3,288.50 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 14.01 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -1,129.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 4,442.00 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 14.16 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio