Diversified FMCG
Hindustan Unilever is a diversified Fast-Moving Consumer Goods (FMCG) company, operating under the stock ticker HINDUNILVR.
With a significant market capitalization of Rs. 517,978.9 Crores, this company specializes in manufacturing and selling a wide array of products across various segments, both in India and internationally.
The company's operations are divided into several key segments:
Home Care: This segment focuses on detergent bars and powders, detergent liquids, scourers, as well as water and purifiers business.
Beauty & Personal Care: Offering products such as oral care, skin care, hair care, soaps, deodorants, talcum powder, and color cosmetics, along with salon services.
Foods & Refreshment: Providing culinary products including tomato-based and fruit-based items, soups, tea, coffee, nutrition drinks, ice creams, and frozen desserts.
Others: Involves activities like export, consignment, job work, real estate, and discharge trust businesses.
Founded in 1888 and headquartered in Mumbai, India, Hindustan Unilever has shown strong financial performance with a trailing twelve months revenue of Rs. 63,600 Crores and profits of Rs. 10,757 crores over the past four quarters.
The company sees a revenue growth of 23.7% over the past three years and distributes dividends to its investors, boasting a yield of 2.4% per year with a recent dividend return of Rs. 53 per share.
Dividend: Dividend paying stock. Dividend yield of 2.29%.
Smart Money: Smart money has been increasing their position in the stock.
Technicals: Bullish SharesGuru indicator.
Size: It is among the top 200 market size companies of india.
Balance Sheet: Strong Balance Sheet.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Profitability: Very strong Profitability. One year profit margin are 17%.
No major cons observed.
Comprehensive comparison against sector averages
HINDUNILVR metrics compared to Diversified
Category | HINDUNILVR | Diversified |
---|---|---|
PE | 51.16 | 28.84 |
PS | 8.65 | 2.32 |
Growth | 1.5 % | 85 % |
HINDUNILVR vs Diversified (2021 - 2025)
Updated May 1, 2025
Shares of Hindustan Unilever Ltd fell over 4% after a 3.35% decline in consolidated net profit for the March quarter.
Despite a revenue increase to Rs 15,416 crore, the company's profit margins faced pressure, leading to a significant market valuation loss of Rs 22,767.53 crore.
The stock's performance over the last three months has declined by 2.92%, contributing to a cautious outlook for investors.
Hindustan Unilever's stock is up 2.63% at Rs 2,349.45, indicating a recovery in trading after recent fluctuations.
The company reported a net profit of Rs 2,984.00 Crores in the last quarter, reflecting strong revenue from higher sales volumes.
Analysts have given 8 strong buy ratings and 15 buy ratings, indicating some level of investor confidence in Hindustan Unilever.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Summary of Hindustan Unilever's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Apr 25
Hindustan Unilever Limited (HUL) provided a cautiously optimistic outlook during its earnings call for the financial year ended March 31, 2025. Management highlighted expectations for gradual improvement in growth trends, supported by accelerating portfolio transformation actions and enhancing macroeconomic conditions. Key drivers include anticipated monetary stimulus, tax relief, declining inflation, and higher agricultural output, with expectations that the first half of the financial year 2026 will perform better than the second half of financial year 2025.
Key forward-looking points shared by management include:
Growth and Pricing: Management anticipates low single-digit price growth for the upcoming period, influenced by inflationary trends in certain commodities versus deflation in others. They aim to optimize the price-value equation while maintaining competitiveness.
EBITDA Margin Guidance: An EBITDA margin target of 22% to 23% was set for the near term, reflecting a strategic decision to increase investments across various P&L lines to stimulate growth rather than prioritize margin expansion. This is seen as a "lean in" approach for the next few quarters.
Investment Focus: Plans to ramp up investments in multi-year market-making platforms and enhance strategic capabilities to successfully execute the portfolio transformation strategy. This convergence of factors is expected to help HUL capture growth opportunities across its segments.
Market Maker Performance: The Market Makers portfolio is expected to continue delivering strong double-digit growth, with significant emphasis on transforming the Future Core and new segments, contributing to overall long-term growth strategy.
Segment Specifics: Lifebuoy and Glow & Lovely have undergone comprehensive relaunches to meet evolving consumer needs, aimed at improving their market positions. Nutrition Drinks are being focused on revitalization to combat previous category headwinds.
The management's remarks reflect a commitment to maintaining competitive strength while addressing operational efficiencies and market dynamics in a growth-oriented strategy to navigate the evolving landscape of the FMCG sector.
Last updated: Apr 25
Q1: Can you explain the EBITDA margin guidance change? What segments are affected?
A: Our EBITDA margin guidance is now set at 22% to 23%, down from 23.1%-24%. This adjustment isn't driven by price versus cost changes but reflects our decision to increase investments across all areas. We believe improving macro conditions and our portfolio transformation efforts allow us to invest more now. The focus on Beauty & Wellbeing will see increased investments, but this adjustment isn't a reflection of pricing pressures in Home Care.
Q2: Is there a risk of increased price-based competition in laundry?
A: The EBITDA margin change isn't specifically tied to Home Care pricing. While inflation leads to some price versus cost impacts due to gradual pricing increases, we've consistently followed inflation trends. Our pricing strategy is crafted to avoid significant compression, ensuring competitive price value equations.
Q3: What is your outlook on the Horlicks portfolio? Will it impact margins?
A: We are committed to revitalizing Horlicks without compromising margins. The focus is on making it contemporary and relevant. Investments will be made in adult nutrition and Boost, both significantly contributing to growth. Drawing from our strategy, any impact on margins will be addressed through improved consumption strategies.
Q4: What are your growth expectations in the sunscreen category?
A: Sunscreen presents a significant growth opportunity with only 3% urban penetration, projected to grow rapidly. We aim to enhance consumer awareness around SPF and UVA protection, alongside advocating for product credibility. This strategic focus differentiates us in a high-margin category.
Q5: Do you see current macroeconomic conditions improving demand? When will we see this?
A: We anticipate improvement in demand over the next few quarters, benefiting from favorable macro trends, including reduced food inflation and a good monsoon. The June and September quarters could witness stronger market demand thanks to our robust portfolio and investment strategy.
Q6: How long do you expect to maintain the 22%-23% EBITDA margin?
A: This margin guidance reflects near-to-midterm expectations, primarily for the next 2-3 quarters. Our longer-term aspiration for modest margin improvement remains unchanged, and we believe moving forward, as we see growth momentum, the margins will improve too.
Q7: What will be the indicators that your growth strategy is working?
A: Our focus remains on volume-led growth, with success gauged through increased market share driven by growing total units sold. In our last four quarters, we noted an uptick in competitive turnover and market share, confirming the strategic investments are yielding positive results.
Q8: How is your competition in the detergent category evolving?
A: The liquid segment is rapidly expanding and outpacing other segments. We are investing in building liquid detergent market share while also optimizing our powders portfolio. Overall, the competitive landscape has remained stable but we expect ongoing growth within this segment due to increased consumer preference.
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Understand Hindustan Unilever ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
UNILEVER PLC | 47.43% |
LICI ULIP-BALANCED FUND | 6.01% |
UNILEVER GROUP LIMITED | 4.54% |
UNILEVER OVERSEAS HOLDINGS AG | 2.93% |
UNILEVER UK&CN HOLDINGS LIMITED | 2.56% |
UNILEVER SOUTH INDIA ESTATES LIMITED | 2.24% |
SBI MULTICAP FUND | 1.75% |
UNILEVER ASSAM ESTATES LIMITED | 1.4% |
ICICI PRUDENTIAL EQUITY & DEBT FUND | 1.3% |
UNILEVER OVERSEAS HOLDINGS B V | 0.8% |
Distribution across major stakeholders
Distribution across major institutional holders
Analysis of Hindustan Unilever's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Home Care | 36.3% | 5.7 kCr |
Foods | 23.7% | 3.7 kCr |
Beauty & Wellbeing | 22.5% | 3.6 kCr |
Personal Care | 14.2% | 2.2 kCr |
Others (includes Exports, Consignment, etc.) | 3.4% | 535 Cr |
Total | 15.8 kCr |
Valuation | |
---|---|
Market Cap | 5.45 LCr |
Price/Earnings (Trailing) | 50.66 |
Price/Sales (Trailing) | 8.57 |
EV/EBITDA | 33.58 |
Price/Free Cashflow | 41.37 |
MarketCap/EBT | 37.64 |
Fundamentals | |
---|---|
Revenue (TTM) | 63.6 kCr |
Rev. Growth (Yr) | 1.7% |
Rev. Growth (Qtr) | -0.59% |
Earnings (TTM) | 10.76 kCr |
Earnings Growth (Yr) | 19.18% |
Earnings Growth (Qtr) | 15.18% |
Profitability | |
---|---|
Operating Margin | 21.95% |
EBT Margin | 22.77% |
Return on Equity | 21.1% |
Return on Assets | 13.32% |
Free Cashflow Yield | 2.42% |
Investor Care | |
---|---|
Dividend Yield | 2.29% |
Dividend/Share (TTM) | 53 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 45.73 |
Financial Health | |
---|---|
Current Ratio | 1.64 |
Debt/Equity | 0 |
Debt/Cashflow | 1.19 K |
Detailed comparison of Hindustan Unilever against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
ITC | ITCDiversified FMCG | 5.37 LCr | 84.7 kCr | +4.93% | -2.23% | 26.28 | 6.34 | +7.07% | -1.77% |
NESTLEIND | Nestle IndiaPackaged Foods | 2.25 LCr | 20.04 kCr | +5.75% | -6.95% | 67.02 | 11.25 | +4.13% | +12.16% |
GODREJCP | Godrej Consumer ProductsPersonal Care | 1.29 LCr | 14.46 kCr | +8.09% | +1.90% | -283.86 | 8.89 | +2.03% | -125.38% |
BRITANNIA | Britannia IndustriesPackaged Foods | 1.28 LCr | 17.8 kCr | +5.33% | +11.48% | 59.3 | 7.18 | +5.11% | +0.01% |
DABUR | Dabur IndiaPersonal Care | 85.17 kCr | 13.09 kCr | -3.07% | -8.52% | 48.15 | 6.51 | +2.70% | +0.34% |