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Hindustan Unilever Ltd

NSE: HINDUNILVR BSE: 500696

2338.10

(-1.90%)

Tue, 03 Mar 2026, 07:09 pm

Hindustan Unilever Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are covered by earnings (1.2x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Hindustan Unilever's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Hindustan Unilever's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Hindustan Unilever's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Hindustan Unilever's earnings are expected to exceed the low risk growth rate next year.
  • Hindustan Unilever's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Hindustan Unilever's net income is expected to increase by more than 50% in 2 years time.
  • Hindustan Unilever is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
  • Performance (ROE) is expected to be above the current Asia Household Products industry average.
  • Hindustan Unilever's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Hindustan Unilever is expected to increase but not above the 50% threshold in 2 years time.
  • Hindustan Unilever's earnings are expected to grow by 18.3% yearly, however this is not considered high growth (20% yearly).
  • Hindustan Unilever's earnings growth is positive but not above the India market average.
  • A decline in Hindustan Unilever's performance (ROE) is expected over the next 3 years.
  • Hindustan Unilever's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Hindustan Unilever's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Hindustan Unilever is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hindustan Unilever is profitable, therefore cash runway is not a concern.
  • Hindustan Unilever is profitable, therefore cash runway is not a concern.
  • Hindustan Unilever has no debt, it does not need to be covered by operating cash flow.
  • Hindustan Unilever has no debt, it does not need to be covered by short term assets.
  • Hindustan Unilever's cash and other short term assets cover its long term commitments.
  • Hindustan Unilever has no debt compared to 5 years ago when it was 1.1%.
  • Hindustan Unilever has no debt, therefore coverage of interest payments is not a concern.
  • Hindustan Unilever has no debt.
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • Sanjiv's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Hindustan Unilever management team is about average.
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Cons

  • The average tenure for the Hindustan Unilever board of directors is less than 3 years, this suggests a new board.
  • Sanjiv's remuneration is higher than average for companies of similar size in India.
  • Hindustan Unilever individual insiders have sold more shares than they have bought in the past 3 months.

past

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Pros

  • Hindustan Unilever's 1-year earnings growth exceeds its 5-year average (11.6% vs 10.3%)
  • Hindustan Unilever's year on year earnings growth rate has been positive over the past 5 years.
  • Hindustan Unilever used its assets more efficiently than the Asia Household Products industry average last year based on Return on Assets.
  • Hindustan Unilever has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
  • Hindustan Unilever made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
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Cons

  • Hindustan Unilever's earnings growth has not exceeded the Asia Household Products industry average in the past year (11.6% vs 11.6%).

value

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Pros

  • 500696 outperformed the Household Products industry which returned 13.9% over the past year.
  • 500696 outperformed the Market in India which returned -14.5% over the past year.
  • BSE:500696 is up 2.1% along with the Household Products industry (2.6%) over the past month.
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Cons

  • Hindustan Unilever's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
  • Hindustan Unilever's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
  • Hindustan Unilever is overvalued based on assets compared to the IN Household Products industry average.
  • Hindustan Unilever is poor value based on expected growth next year.
  • Hindustan Unilever is overvalued based on earnings compared to the Asia Household Products industry average.
  • Hindustan Unilever is overvalued based on earnings compared to the India market.
  • BSE:500696 is up 2.1% underperforming the market in India which returned 8% over the past month.

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