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

Cupid

ITC

Britannia Inds.

Dabur India

Hind. Unilever

Godfrey Phillips

Godrej Consumer

Tata Consumer

Colgate-Palmoliv

P&G Hygiene

Why is Hindustan Unilever Ltd ?

Flat results in Jun 26

OPERATING CF(Y) Lowest at Rs 10,999.00 Cr
ROCE(HY) Lowest at 20.01%
INVENTORY TURNOVER RATIO(HY) Lowest at 13.31 times

With ROE of 24.6, it has a Expensive valuation with a 10 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 -16.06%, its profits have risen by 11.9% ; the PEG ratio of the company is 3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.06% 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, Low Return

Absolute

Risk Adjusted

Volatility

Hind. Unilever

-16.06%

-0.74

21.56%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.38%

EBIT Growth (5y)

5.38%

EBIT to Interest (avg)

61.02

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.17

Tax Ratio

25.29%

Dividend Payout Ratio

64.06%

Pledged Shares

Institutional Holding

26.49%

ROCE (avg)

31.16%

ROE (avg)

20.82%

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

10.03

EV to EBIT

34.48

EV to EBITDA

31.43

EV to Capital Employed

11.30

EV to Sales

7.31

PEG Ratio

3.00

Dividend Yield

1.97%

ROCE (Latest)

32.12%

ROE (Latest)

24.64%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

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

6What is working for the Company

PBDIT(Q)

Highest at Rs 3,947.00 cr.

NET SALES(Q)

Highest at Rs 17,341.00 cr

PBT LESS OI(Q)

Highest at Rs 3,519.00 cr.

-10What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 10,999.00 Cr

ROCE(HY)

Lowest at 20.01%

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.31 times

DPR(Y)

Lowest at 64.06%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 3,248.00 cr

PAT(Q)

At Rs 2,728.34 cr has Fallen at -9.1% (vs previous 4Q average

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Here's what is working for Hind. Unilever

Operating Profit (PBDIT) - Quarterly

Highest at Rs 3,947.00 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 3,519.00 cr has Grown at 58.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2,222.25 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 17,341.00 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 3,519.00 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for Hind. Unilever

Operating Cash Flow - Annually

Lowest at Rs 10,999.00 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 13.31 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 After Tax (PAT) - Quarterly

At Rs 2,728.34 cr has Fallen at -9.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 3,002.77 Cr

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 3,248.00 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio (DPR) - Annually

Lowest at 64.06%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)