HUL
HUL
FMCG F&OKey Fundamentals
LargecapDiversified FMCGFMCGTapetide Score
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Key Insights
Strengths
2- Company is almost debt free.
- Company has been maintaining a healthy dividend payout of 92.4%
Weaknesses
3- Stock is trading at 8.85 times its book value
- The company has delivered a poor sales growth of 6.51% over past five years.
- Earnings include an other income of Rs.4,933 Cr.
Growth Rate
AI Analysis — Bull vs Bear
Hindustan Unilever has a market capitalisation of about ₹4,51,615 Cr and trades at a P/E of 30.3 and a P/B of 9.32. It is almost debt free, earned an ROE of 31% last year and pays out 92.4% of profits as dividends. Against that, sales grew at only a 2% CAGR over 3 years and 6% on a TTM basis. The stock has returned -19% over 1 year and -6% CAGR over 5 years, and other income of ₹4,933 Cr is a large share of reported earnings.
- Returns on capital are high. ROE was 31% last year and has averaged 28% over 10 years, well above the cost of equity for a large-cap consumer business.
- The balance sheet is almost debt free. That reduces financial risk and keeps earnings from being hurt by interest-rate cycles, which matters for a company of about ₹4,51,615 Cr market cap.
- Payouts to shareholders are generous. The dividend payout ratio is 92.4% and the dividend yield is 2.12%, which is high for a large Indian FMCG stock.
- Profit has grown much faster than sales. Profit compounded at 14% over 3 years and 13% over 5 years, against sales CAGR of 2% and 7%. This points to pricing power, a better product mix and cost efficiency.
- Sales may be picking up. TTM sales growth of 6% is about three times the 3-year sales CAGR of 2%, which could mean volume or price growth is recovering.
- The valuation has compressed. The stock has fallen at a -7% CAGR over 3 years while profit grew at a 14% CAGR, so the P/E is now 30.3, down from earlier levels.
- Long-term compounding is solid. The stock has delivered a 9% CAGR over 10 years, backed by a 14% 10-year profit CAGR and steady 7% 10-year sales growth.
- Top-line growth is weak. Sales compounded at just 2% over 3 years and 6.51% over 5 years, which is slow for a consumer company in a growing economy.
- Earnings quality is a concern. Other income of ₹4,933 Cr is about 33% of implied net earnings of roughly ₹14,900 Cr (market cap divided by P/E of 30.3), so core operating profit is smaller than headline profit suggests.
- Shareholder returns have been poor. The stock has returned -19% over 1 year, -7% CAGR over 3 years and -6% CAGR over 5 years, destroying value for holders over the medium term.
- The price-to-book of 9.32 is very high and leaves little margin of safety if growth or returns fall short.
- Margins may be under pressure. TTM profit growth of 4% is below TTM sales growth of 6%, the reverse of the earlier margin-expansion trend.
- Growth does not match the valuation. A P/E of 30.3 against 4% TTM profit growth implies a PEG ratio of about 7.5.
- Last year's 31% ROE is well above the 3-year average of 24% and the 5-year average of 22%. The recent figure may be flattered by the large other-income component rather than an improvement in the core business.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Regional players regaining share Sep 6
Management acknowledged small and regional players are coming back in select categories and price points. In tea and detergent bars they are growing well ahead of large players.
- Material inflation squeezing pricing Sep 6
HUL is facing 8-10% material cost inflation and offsetting it with calibrated price hikes of only 2-5%, so cost savings have to cover the rest of the gap.
- Rising competitive media intensity Sep 6
Aggregate media deployment in HUL's categories is up more than 20% YoY. Management says it will 'not blink' on spending, so savings are being reinvested instead of boosting profit.
- ROCE moderating despite ROE gains Sep 6
ROE improved to 30.69% in FY26, but ROCE has moderated to 23.84%. Capex has historically shown little correlation with revenue growth, as in FY24 when capex rose 23.9% while revenue grew 0.3%.
- 'New India' growth strategy unveiled Sep 9
At its investor meet, HUL set out a volume-led growth plan built on premiumisation and market making, targeting a 22-24% EBITDA margin. It is also expanding into protein and skincare.
- Q1 FY27 balanced 10% growth Sep 6
Underlying sales grew 10% in Q1 FY27, split evenly between 5% underlying volume growth and pricing. Q4 FY26 EBITDA margin was 23.7%, at the top end of guidance.
- Premium portfolio growing 2.5x faster Sep 6
Premium products are growing more than 2.5x faster than the mass portfolio. Bodywash gained about 400 bps of market share and its turnover has tripled in three years.
- ₹2,000 crore premium capacity capex Sep 6
HUL approved ₹2,000 crore of capex for premium liquids capacity across Home Care, Personal Care and Beauty. It is also targeting 500 bps of 'fuel for growth' and has already cut other expenses and employee costs by a net 160 bps.
- Boost joins ₹1,000 crore club Sep 6
Boost became HUL's 21st brand with annual turnover above ₹1,000 crore. Lifestyle Nutrition posted its fifth straight quarter of positive volume growth, with Horlicks and Boost both growing at double digits.
- Digital and quick commerce scaling Sep 6
Digital now accounts for more than 60% of media spend, up from 32% two years ago, and HUL works with 30,000 creators. Quick commerce business doubled YoY, and the Future Core portfolio is close to ₹2,000 crore.
- Interim injunction against Beco ads Sep 10
The Delhi High Court granted HUL an interim injunction stopping Beco from airing ads that disparage Surf Excel and Vim. The order protects the brands, but the case is still in its interim stage.
- Capital Markets Day and investor meets Sep 4
HUL released its 'Winning in New India' Capital Markets Day 2026 deck on Sep 4. It also scheduled three physical investor meetings in early September, including events with Barclays and UBS.
- ₹31.90 crore large trade flagged Sep 22
About 1,64,105 shares changed hands on BSE at ₹1,944.00, worth ₹31.90 crore in total. A trade scanner flagged it, and it is not a confirmed exchange-reported block or bulk deal.
TL;DR: HUL is doing well on execution: Q1 FY27 underlying sales grew 10% with a balanced 5% volume growth, Q4 FY26 margin hit 23.7%, premium products are growing 2.5x faster than mass, and ₹2,000 crore of capex is backing premium formats. The main risks are regional players coming back in tea and detergent bars, 8-10% input inflation against only 2-5% price hikes, and media spend up more than 20% YoY, all of which keep savings from reaching profit. Margin guidance also differs by source (22-24% vs 22.5-23.5%), which is worth checking against the official deck. The trend is improving, and management expects FY27 to beat FY26, but holding margins near 23% while defending share will decide whether the premium valuation is justified.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 15,496 | 15,623 | 15,567 | 15,210 | 15,707 | 15,926 | 15,556 | 15,190 | 15,757 | 15,919 | 16,441 | 16,351 | 17,341 |
| Expenses | 11,832 | 11,828 | 11,902 | 11,675 | 11,965 | 12,139 | 11,867 | 11,572 | 12,118 | 12,137 | 12,660 | 12,514 | 13,394 |
| Operating Profit | 3,664 | 3,795 | 3,665 | 3,535 | 3,742 | 3,787 | 3,689 | 3,618 | 3,639 | 3,782 | 3,781 | 3,837 | 3,947 |
| OPM % | 24% | 24% | 24% | 23% | 24% | 24% | 24% | 24% | 23% | 24% | 23% | 23% | 23% |
| Other Income | 146 | 178 | 184 | 309 | 209 | 203 | 733 | 149 | 103 | 269 | 4,048 | 503 | 113 |
| Interest | 50 | 88 | 91 | 105 | 93 | 110 | 109 | 77 | 122 | 124 | 88 | 76 | 75 |
| Depreciation | 286 | 297 | 313 | 320 | 329 | 338 | 318 | 318 | 326 | 322 | 337 | 348 | 353 |
| PBT | 3,474 | 3,588 | 3,445 | 3,419 | 3,529 | 3,542 | 3,995 | 3,372 | 3,294 | 3,605 | 7,404 | 3,916 | 3,632 |
| Tax % | 26% | 26% | 27% | 25% | 26% | 27% | 25% | 27% | 16% | 25% | 11% | 24% | 26% |
| Net Profit | 2,556 | 2,657 | 2,508 | 2,561 | 2,612 | 2,595 | 2,989 | 2,475 | 2,768 | 2,694 | 6,603 | 2,994 | 2,680 |
| EPS in Rs | 10.87 | 11.3 | 10.68 | 10.89 | 11.11 | 11.03 | 12.7 | 10.49 | 11.73 | 11.43 | 28.12 | 12.73 | 11.38 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 31,972 | 32,186 | 33,162 | 35,545 | 39,310 | 39,783 | 47,028 | 52,446 | 60,580 | 61,896 | 61,328 | 64,468 | 66,052 |
| Expenses | 26,560 | 26,276 | 26,834 | 28,046 | 30,430 | 29,922 | 35,402 | 39,589 | 46,433 | 47,237 | 46,630 | 49,429 | 50,705 |
| Operating Profit | 5,412 | 5,910 | 6,328 | 7,499 | 8,880 | 9,861 | 11,626 | 12,857 | 14,147 | 14,659 | 14,698 | 15,039 | 15,347 |
| OPM % | 17% | 18% | 19% | 21% | 23% | 25% | 25% | 25% | 23% | 24% | 24% | 23% | 23% |
| Other Income | 1,247 | 486 | 606 | 353 | 322 | 424 | 170 | 219 | 448 | 817 | 1,355 | 4,923 | 4,933 |
| Interest | 18 | 17 | 35 | 26 | 33 | 118 | 117 | 106 | 114 | 334 | 381 | 410 | 363 |
| Depreciation | 322 | 353 | 432 | 520 | 565 | 1,002 | 1,074 | 1,091 | 1,137 | 1,216 | 1,253 | 1,333 | 1,360 |
| PBT | 6,320 | 6,026 | 6,467 | 7,306 | 8,604 | 9,165 | 10,605 | 11,879 | 13,344 | 13,926 | 14,419 | 18,219 | 18,557 |
| Tax % | 31% | 31% | 31% | 28% | 30% | 26% | 25% | 25% | 24% | 26% | 26% | 17% | — |
| Net Profit | 4,376 | 4,151 | 4,490 | 5,227 | 6,060 | 6,756 | 7,999 | 8,892 | 10,143 | 10,282 | 10,671 | 15,059 | 14,971 |
| EPS in Rs | 20.17 | 19.18 | 20.68 | 24.09 | 27.97 | 31.17 | 34.03 | 37.79 | 43.07 | 43.74 | 45.32 | 64.01 | 63.66 |
| Div. Payout % | 74% | 83% | 82% | 83% | 78% | 80% | 119% | 90% | 91% | 96% | 117% | 64% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 216 | 216 | 216 | 216 | 216 | 216 | 235 | 235 | 235 | 235 | 235 | 235 |
| Reserves | 3,811 | 6,357 | 6,528 | 7,065 | 7,651 | 8,013 | 47,439 | 48,826 | 50,069 | 50,983 | 49,167 | 48,504 |
| Borrowings | 43 | 177 | 277 | 0 | 99 | 0 | 0 | 1,043 | 1,219 | 1,484 | 1,648 | 1,478 |
| Other Liabilities | 10,359 | 8,043 | 8,685 | 10,581 | 10,663 | 11,924 | 21,066 | 20,402 | 21,554 | 25,787 | 28,813 | 29,521 |
| Total Liabilities | 14,430 | 14,793 | 15,706 | 17,862 | 18,629 | 20,153 | 68,740 | 70,506 | 73,077 | 78,489 | 79,863 | 79,738 |
| Fixed Assets | 2,821 | 3,258 | 4,419 | 4,528 | 4,715 | 5,479 | 51,443 | 51,473 | 52,678 | 53,744 | 54,335 | 57,428 |
| CWIP | 516 | 408 | 229 | 461 | 406 | 597 | 745 | 1,313 | 1,132 | 1,025 | 1,009 | 880 |
| Investments | 3,025 | 2,592 | 3,794 | 2,873 | 2,716 | 1,255 | 2,709 | 3,521 | 2,882 | 4,625 | 3,810 | 4,359 |
| Other Assets | 8,067 | 8,535 | 7,264 | 10,000 | 10,792 | 12,822 | 13,843 | 14,199 | 16,385 | 19,095 | 20,709 | 17,071 |
| Total Assets | 14,430 | 14,793 | 15,706 | 17,862 | 18,629 | 20,153 | 68,740 | 70,506 | 73,077 | 78,489 | 79,863 | 79,738 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 3,292 | 4,171 | 5,185 | 6,059 | 5,800 | 7,623 | 9,163 | 9,048 | 9,991 | 15,469 | 11,886 | 10,999 |
| Investing | 138 | -282 | -1,173 | -1,063 | -438 | 1,791 | -1,228 | -1,728 | -1,484 | -5,324 | 6,473 | -3,676 |
| Financing | -3,462 | -3,864 | -4,214 | -4,975 | -5,390 | -6,819 | -9,309 | -8,015 | -8,953 | -10,034 | -13,101 | -10,810 |
| Net Cash Flow | -33 | 25 | -202 | 21 | -28 | 2,595 | -1,374 | -695 | -446 | 111 | 5,258 | -3,487 |
| Free Cash Flow | 3,246 | 3,460 | 4,248 | 5,196 | 5,046 | 6,813 | 5,097 | 7,995 | 8,980 | 14,012 | 10,624 | 9,667 |
| CFO/OP | 95 | 100 | 111 | 111 | 96 | 103 | 100 | 92 | 93 | 108 | 96 | 105 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 12 | 14 | 12 | 13 | 17 | 11 | 14 | 16 | 19 | 18 | 23 | 19 |
| Inventory Days | 77 | 75 | 67 | 65 | 59 | 65 | 66 | 65 | 55 | 55 | 61 | 61 |
| Days Payable | 148 | 156 | 164 | 185 | 166 | 176 | 163 | 145 | 123 | 143 | 156 | 169 |
| Cash Conversion Cycle | -60 | -67 | -85 | -107 | -90 | -101 | -83 | -64 | -50 | -70 | -72 | -89 |
| Working Capital Days | -53 | -26 | -35 | -37 | -30 | -31 | -32 | -22 | -15 | -22 | -34 | -23 |
| ROCE % | 139% | 112% | 91% | 103% | 116% | 117% | 39% | 25% | 27% | 27% | 28% | 28% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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73 extracted metrics + investor summaries across FY09–FY27.
Documents
Frequently Asked Questions about HUL
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Company Information
Hindustan Unilever is in the FMCG business comprising primarily of Home Care, Beauty & Personal Care and Foods & Refreshment segments. The Company has manufacturing facilities across the country and sells primarily in India.[1]
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