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

Hind. Unilever

Dabur India

P&G Hygiene

Britannia Inds.

Godrej Consumer

Gillette India

Tata Consumer

Colgate-Palmoliv

Why is Hindustan Unilever Ltd ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 20.83%

Healthy long term growth as Net Sales has grown by an annual rate of 6.76%
The company is Net-Debt Free

Flat results in Mar 26

ROCE(HY) Lowest at 20.15%
INVENTORY TURNOVER RATIO(HY) Lowest at 13.47 times
CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 3,248.00 cr

With ROE of 24.7, it has a Very Expensive valuation with a 11.2 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 -2.68%, its profits have risen by 15.3% ; the PEG ratio of the company is 3

High Institutional Holdings at 26.5%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Below par performance in long term as well as near term

Along with generating -2.68% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hind. Unilever should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hind. Unilever for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Hind. Unilever

-2.72%

-0.14

20.09%

Sensex

-3.33%

-0.25

13.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.76%

EBIT Growth (5y)

5.46%

EBIT to Interest (avg)

66.67

Debt to EBITDA (avg)

0.10

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.17

Tax Ratio

22.88%

Dividend Payout Ratio

116.96%

Pledged Shares

Institutional Holding

26.50%

ROCE (avg)

31.18%

ROE (avg)

20.83%

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

11.17

EV to EBIT

39.13

EV to EBITDA

35.59

EV to Capital Employed

12.61

EV to Sales

8.26

PEG Ratio

2.96

Dividend Yield

1.85%

ROCE (Latest)

32.22%

ROE (Latest)

24.69%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

PAT(Latest six months)

At Rs 6,579.82 cr has Grown at 26.77%

PBDIT(Q)

Highest at Rs 3,841.00 cr.

PBT LESS OI(Q)

At Rs 3,421.00 cr has Grown at 55.8% (vs previous 4Q average

-5What is not working for the Company

ROCE(HY)

Lowest at 20.15%

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.47 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 3,248.00 cr

Loading Valuation Snapshot...

Here's what is working for Hind. Unilever

Operating Profit (PBDIT) - Quarterly

Highest at Rs 3,841.00 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 3,421.00 cr has Grown at 55.8% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2,195.50 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Latest six months

At Rs 6,579.82 cr has Grown at 26.77%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Hind. Unilever

Inventory Turnover Ratio- Half Yearly

Lowest at 13.47 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

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