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Hindustan Unilever

BSE:500696
Snowflake Description

Flawless balance sheet with outstanding track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
500696
BSE
₹3,953B
Market Cap
  1. Home
  2. IN
  3. Household
Company description

Hindustan Unilever Limited, a consumer goods company, manufactures and sells home and personal care, food, and refreshment products in India and internationally. The last earnings update was 75 days ago. More info.


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500696 Share Price and Events
7 Day Returns
-0.7%
BSE:500696
-0.8%
IN Household Products
-0.7%
IN Market
1 Year Returns
2.5%
BSE:500696
1.6%
IN Household Products
-12.1%
IN Market
500696 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hindustan Unilever (500696) -0.7% 5% 5.2% 2.5% 100.2% 159.3%
IN Household Products -0.8% 3.6% 5.3% 1.6% 96.2% 155.3%
IN Market -0.7% -5.7% -4.3% -12.1% 13% 25.2%
1 Year Return vs Industry and Market
  • 500696 matched the Household Products industry (1.6%) over the past year.
  • 500696 outperformed the Market in India which returned -12.1% over the past year.
Price Volatility
500696
Industry
5yr Volatility vs Market

Value

 Is Hindustan Unilever undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Hindustan Unilever to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Hindustan Unilever.

BSE:500696 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:500696
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Household Products Unlevered Beta Simply Wall St/ S&P Global 0.4
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.399 (1 + (1- 35%) (0.03%))
0.597
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 8.6%)
14.43%

Discounted Cash Flow Calculation for BSE:500696 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Hindustan Unilever is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BSE:500696 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.43%)
2020 74,157.61 Analyst x10 64,806.09
2021 86,531.09 Analyst x11 66,083.40
2022 100,415.43 Analyst x4 67,016.35
2023 113,137.63 Est @ 12.67% 65,985.35
2024 125,734.04 Est @ 11.13% 64,084.55
2025 138,381.11 Est @ 10.06% 61,636.42
2026 151,258.87 Est @ 9.31% 58,876.44
2027 164,538.20 Est @ 8.78% 55,969.00
2028 178,376.60 Est @ 8.41% 53,024.77
2029 192,918.42 Est @ 8.15% 50,115.80
Present value of next 10 years cash flows ₹607,598.18
BSE:500696 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹192,918.42 × (1 + 7.55%) ÷ (14.43% – 7.55%)
₹3,015,752.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹3,015,752.29 ÷ (1 + 14.43%)10
₹783,423.67
BSE:500696 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹607,598.18 + ₹783,423.67
₹1,391,021.85
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹1,391,021.85 / 2,164.80
₹642.56
BSE:500696 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹642.56
Current discount Discount to share price of ₹1,826.20
= -1 x (₹1,826.20 - ₹642.56) / ₹642.56
-184.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Hindustan Unilever is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Hindustan Unilever's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hindustan Unilever's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:500696 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹27.97
BSE:500696 Share Price ** BSE (2019-08-16) in INR ₹1826.2
India Household Products Industry PE Ratio Median Figure of 5 Publicly-Listed Household Products Companies 26.92x
India Market PE Ratio Median Figure of 2,785 Publicly-Listed Companies 13.56x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Hindustan Unilever.

BSE:500696 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500696 Share Price ÷ EPS (both in INR)

= 1826.2 ÷ 27.97

65.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hindustan Unilever is overvalued based on earnings compared to the IN Household Products industry average.
  • Hindustan Unilever is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Hindustan Unilever's expected growth come at a high price?
Raw Data
BSE:500696 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 65.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
14.2%per year
Global Household Products Industry PEG Ratio Median Figure of 14 Publicly-Listed Household Products Companies 2.39x
India Market PEG Ratio Median Figure of 544 Publicly-Listed Companies 1.09x

*Line of best fit is calculated by linear regression .

BSE:500696 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 65.3x ÷ 14.2%

4.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hindustan Unilever is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Hindustan Unilever's assets?
Raw Data
BSE:500696 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹36.34
BSE:500696 Share Price * BSE (2019-08-16) in INR ₹1826.2
India Household Products Industry PB Ratio Median Figure of 6 Publicly-Listed Household Products Companies 1.39x
India Market PB Ratio Median Figure of 3,663 Publicly-Listed Companies 0.87x
BSE:500696 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500696 Share Price ÷ Book Value per Share (both in INR)

= 1826.2 ÷ 36.34

50.25x

* Primary Listing of Hindustan Unilever.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Hindustan Unilever is overvalued based on assets compared to the IN Household Products industry average.
X
Value checks
We assess Hindustan Unilever's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Household Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Household Products industry average (and greater than 0)? (1 check)
  5. Hindustan Unilever has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Hindustan Unilever expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hindustan Unilever expected to grow at an attractive rate?
  • Hindustan Unilever's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Hindustan Unilever's earnings growth is positive but not above the India market average.
  • Hindustan Unilever's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
BSE:500696 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:500696 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 14.2%
BSE:500696 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 10.5%
India Household Products Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
Global Household Products Industry Revenue Growth Rate Market Cap Weighted Average 4.3%
India Market Earnings Growth Rate Market Cap Weighted Average 17.9%
India Market Revenue Growth Rate Market Cap Weighted Average 11.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:500696 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:500696 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 540,664 109,737 93,613 6
2021-03-31 479,382 91,860 81,502 18
2020-03-31 419,211 80,397 70,077 16
BSE:500696 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 393,100 58,000 60,540
2018-03-31 355,450 60,590 52,120
2017-03-31 331,620 51,850 44,880

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hindustan Unilever's earnings are expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).
  • Hindustan Unilever's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:500696 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Hindustan Unilever Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:500696 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 42.63 45.49 40.19 6.00
2021-03-31 37.48 40.18 34.74 17.00
2020-03-31 32.33 33.50 31.30 17.00
BSE:500696 Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 27.97
2018-03-31 24.08
2017-03-31 20.74

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Hindustan Unilever is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Hindustan Unilever's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Hindustan Unilever has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Hindustan Unilever performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Hindustan Unilever's growth in the last year to its industry (Household Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Hindustan Unilever's year on year earnings growth rate has been positive over the past 5 years.
  • Hindustan Unilever's 1-year earnings growth exceeds its 5-year average (16.2% vs 8.2%)
  • Hindustan Unilever's earnings growth has exceeded the IN Household Products industry average in the past year (16.2% vs -22.7%).
Earnings and Revenue History
Hindustan Unilever's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Hindustan Unilever Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:500696 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 393,100.00 60,540.00 68,080.00
2018-03-31 355,450.00 52,120.00 63,080.00
2017-03-31 331,620.00 44,880.00 55,600.00
2016-03-31 321,860.00 41,460.00 56,070.00
2015-03-31 319,721.90 43,630.80 58,865.90
2014-03-31 292,337.40 39,455.70 70,160.20
2013-03-31 270,039.90 38,289.80 63,265.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Hindustan Unilever made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Hindustan Unilever used its assets more efficiently than the IN 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).
X
Past performance checks
We assess Hindustan Unilever's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Household Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Hindustan Unilever has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Hindustan Unilever's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Hindustan Unilever's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hindustan Unilever is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Hindustan Unilever's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Hindustan Unilever's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 120.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Hindustan Unilever Company Filings, last reported 4 months ago.

BSE:500696 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 78,850.00 990.00 63,180.00
2018-03-31 73,010.00 0.00 62,160.00
2017-03-31 67,660.00 2,810.00 55,000.00
2016-03-31 65,930.00 1,810.00 55,690.00
2015-03-31 40,522.80 430.40 53,906.70
2014-03-31 35,595.70 455.80 49,739.80
2013-03-31 28,856.30 247.40 37,577.30
  • Hindustan Unilever's level of debt (1.3%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (1.3% vs 1.3% today).
  • Debt is well covered by operating cash flow (5858.6%, greater than 20% of total debt).
  • Hindustan Unilever earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Hindustan Unilever's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Hindustan Unilever has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Hindustan Unilever's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.2%
Current annual income from Hindustan Unilever dividends. Estimated to be 1.57% next year.
If you bought ₹2,000 of Hindustan Unilever shares you are expected to receive ₹24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Hindustan Unilever's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).
  • Hindustan Unilever's dividend is below the markets top 25% of dividend payers in India (2.52%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:500696 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
Asia Household Products Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1.2%
India Market Average Dividend Yield Market Cap Weighted Average of 1441 Stocks 1.5%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:500696 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 32.46 7.00
2021-03-31 30.07 17.00
2020-03-31 25.53 17.00
BSE:500696 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-07 22.000 1.248
2018-10-12 21.000 1.217
2018-05-14 20.000 1.216
2017-10-25 18.000 1.342
2017-05-19 17.000 1.468
2016-10-26 16.500 1.904
2016-05-09 16.000 1.803
2015-10-14 15.500 1.864
2015-06-04 15.000 1.748
2015-05-08 15.000 1.757
2014-10-27 13.500 1.594
2014-04-28 13.000 1.980
2013-10-28 11.500 2.005
2013-07-02 12.000 1.932
2013-04-29 12.000 2.049
2012-10-29 9.000 1.833
2012-05-02 8.000 1.676
2011-10-31 7.000 1.772
2011-05-20 6.500 1.998
2011-05-09 6.500 2.146
2010-10-25 6.500 2.258
2010-05-25 6.500 2.416
2009-06-01 8.000 3.128
2009-05-11 8.000 3.491

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Hindustan Unilever's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Hindustan Unilever's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Hindustan Unilever afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hindustan Unilever has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Hindustan Unilever's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sanjiv Mehta
COMPENSATION ₹188,800,000
AGE 59
TENURE AS CEO 5.8 years
CEO Bio

Mr. Sanjiv Mehta has been the Managing Director and Chief Executive Officer of Hindustan Unilever Limited since October 1, 2013. Mr. Mehta serves as President of South Asia at Unilever PLC since May 1, 2019. He serves as Chairman of the Board of Hindustan Unilever Limited since June 29, 2018. He served as an Executive Vice President for Unilever in South Asia at Unilever PLC May 1, 2019. Mr. Mehta joined Unilever in October 1992. He has led several Unilever businesses across South Asia, South East Asia and Middle East. He was appointed Chairman and Managing Director of Unilever Bangladesh in 2002. In 2007, he was appointed as Chairman and CEO of Unilever Philippines. Before joining Unilever, Mr. Mehta worked for Union Carbide India. Mr. Mehta served as the Chairman of North Africa & Middle East of Unilever N.V. in 2008 and Hindustan Unilever Ltd. He serves as a Director of Bhavishya Alliance Child Nutrition Initiatives. He has been a Director of Hindustan Unilever Limited since October 1, 2013. He has directorship in Hindustan Unilever Foundation, Breach Candy Hospital Trust, Bombay Chamber of Commerce & Industry and Indian School of Business. He is a Commerce graduate and a Chartered Accountant. He has also completed an Advanced Management Programme from Harvard Business School.

CEO Compensation
  • Sanjiv's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Sanjiv's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Hindustan Unilever management team in years:

3.5
Average Tenure
54
Average Age
  • The tenure for the Hindustan Unilever management team is about average.
Management Team

Sanjiv Mehta

TITLE
Chairman
COMPENSATION
₹189M
AGE
59
TENURE
5.8 yrs

Srinivas Phatak

TITLE
Executive Director of Finance & IT
COMPENSATION
₹49M
AGE
48
TENURE
1.7 yrs

Dev Bajpai

TITLE
Executive Director of Legal & Corp. Affairs
COMPENSATION
₹68M
AGE
53
TENURE
9.6 yrs

Pradeep Banerjee

TITLE
Executive Director of Supply Chain & Executive Director
COMPENSATION
₹59M
AGE
60
TENURE
9.4 yrs

Srinandan Sundaram

TITLE
Executive Director of Sales & Customer Development
AGE
44

Anuradha Razdan

TITLE
Executive Director of Human Resources
TENURE
0.2 yrs

Samir Singh

TITLE
Global Executive Vice President of Skin Cleansing
COMPENSATION
₹61M
TENURE
3.5 yrs

Vibhav Sanzgiri

TITLE
Executive Director of Research & Development
TENURE
0.2 yrs

Nitin Paranjpe

TITLE
President of Foods & Refreshment for Unilever
AGE
55
TENURE
5.8 yrs

Suman Hegde

TITLE
Group Controller
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Hindustan Unilever board of directors in years:

4.8
Average Tenure
60
Average Age
  • The tenure for the Hindustan Unilever board of directors is about average.
Board of Directors

Sanjiv Mehta

TITLE
Chairman
COMPENSATION
₹189M
AGE
59
TENURE
1.2 yrs

Srinivas Phatak

TITLE
Executive Director of Finance & IT
COMPENSATION
₹49M
AGE
48
TENURE
1.7 yrs

Dev Bajpai

TITLE
Executive Director of Legal & Corp. Affairs
COMPENSATION
₹68M
AGE
53
TENURE
2.6 yrs

Pradeep Banerjee

TITLE
Executive Director of Supply Chain & Executive Director
COMPENSATION
₹59M
AGE
60
TENURE
9.4 yrs

Aditya Narayan

TITLE
Independent Director
COMPENSATION
₹3M
AGE
67
TENURE
18.2 yrs

Om Bhatt

TITLE
Independent Director
COMPENSATION
₹3M
AGE
68
TENURE
7.7 yrs

Sanjiv Misra

TITLE
Independent Director
COMPENSATION
₹3M
AGE
71
TENURE
6.3 yrs

Kalpana Morparia

TITLE
Independent Director
COMPENSATION
₹2M
AGE
70
TENURE
4.8 yrs

Leo Puri

TITLE
Independent Director
COMPENSATION
₹2M
AGE
58
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Hindustan Unilever individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
01. Aug 19 Sell Krishnan Sundaram Individual 30. Jul 19 30. Jul 19 -10,367 ₹1,720.00 ₹-17,831,240
28. Jun 19 Sell R. Subramanian Individual 04. Jun 19 04. Jun 19 -612 ₹1,815.36 ₹-1,111,000
11. Jun 19 Sell Ankush Punj Individual 10. Jun 19 10. Jun 19 -2,000 ₹1,846.00 ₹-3,692,000
07. Jun 19 Buy Aniket Gandhi Individual 21. May 19 21. May 19 2,000 ₹1,785.44 ₹3,570,873
04. Jun 19 Sell Shilpa Vora Individual 22. May 19 22. May 19 -994 ₹1,810.87 ₹-1,800,000
25. Mar 19 Sell Sudhir Sitapati Individual 18. Mar 19 19. Mar 19 -7,449 ₹1,700.00 ₹-12,663,300
11. Mar 19 Sell Priya Nair Individual 08. Mar 19 08. Mar 19 -1,000 ₹1,699.10 ₹-1,699,100
09. Jan 19 Sell Aakriti Chandra Individual 31. Dec 18 31. Dec 18 -950 ₹1,796.29 ₹-1,706,473
21. Nov 18 Sell Meenakshi Venkatakrishnan Individual 19. Nov 18 19. Nov 18 -1,000 ₹1,700.00 ₹-1,700,000
21. Nov 18 Sell Vipul Chaturvedi Individual 19. Nov 18 19. Nov 18 -800 ₹1,700.00 ₹-1,360,000
31. Aug 18 Sell Harishankar Krishnan Individual 27. Aug 18 30. Aug 18 -11,000 ₹1,771.59 ₹-19,487,512
24. Aug 18 Sell Aakriti Chandra Individual 24. Aug 18 24. Aug 18 -750 ₹1,780.00 ₹-1,335,000
X
Management checks
We assess Hindustan Unilever's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Hindustan Unilever has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Interested In Hindustan Unilever Limited (BOM:500696)? Here's What Its Recent Performance Looks Like

When Hindustan Unilever Limited (BOM:500696) announced its most recent earnings (31 March 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Understanding how Hindustan Unilever performed requires a benchmark rather than trying to assess a standalone number at one point in time. … 500696's trailing twelve-month earnings (from 31 March 2018) of ₹52.12b has.

Simply Wall St -

Company Info

Description

Hindustan Unilever Limited, a consumer goods company, manufactures and sells home and personal care, food, and refreshment products in India and internationally. The company operates through Home Care, Beauty & Personal Care, Foods & Refreshment, and Others segments. The Home Care segment offers detergent bars and powders, detergent liquids, scourers, water business, etc. The Beauty & Personal Care segment provides oral, skin, and hair care products, as well as deodorants, talcum powder, color cosmetics, salon services, etc. The Foods & Refreshment segment provides staples, including atta, salt, bread, etc.; and culinary products, such as tomato based products, fruit based products, soups, etc., as well as tea, coffee, and frozen desserts. The Others segment offers infant care products and exports products. The company also engages in the beauty salons, job work, discharge trust, and real estate businesses. It provides its food and drink products under the Cornetto, Knorr, Lipton, Magnum, BRU, Annapurna, Brooke Bond 3 Roses, Brooke Bond Red Label, Brooke Bond Taaza, Brooke Bond Taj Mahal, Kissan, and Kwality Wall's brands; and home care products under the Cif, Comfort, Active Wheel, Domex, Rin, Surf excel, Vim, and Sunlight brands. The company offers its personal care products under the Axe, Dove, Lifebuoy, Lux, Pepsodent, Pond’s, Sunsilk, Sure, TRESemmé, Vaseline, aviance, Breeze, Citra, Clear, Closeup, Fair & Lovely, Lakmé, Pears, TIGI, TONI & GUY, Brylcreem, Clinic Plus, ELLE 18, Hamam, ayush, Indulekha, Liril, Pure Derm, and Rexona brands; and water purifiers under the Pureit brand. The company was founded in 1931 and is based in Mumbai, India. Hindustan Unilever Limited is a subsidiary of Unilever PLC.

Details
Name: Hindustan Unilever Limited
500696
Exchange: BSE
Founded: 1931
₹3,953,359,653,769
2,164,801,037
Website: http://www.hul.co.in
Address: Hindustan Unilever Limited
Unilever House,
B. D. Sawant Marg,
Mumbai,
Maharashtra, 400099,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500696 Ordinary Shares Mumbai Stock Exchange IN INR 03. Jan 1991
NSEI HINDUNILVR Ordinary Shares National Stock Exchange of India IN INR 03. Jan 1991
Number of employees
Current staff
Staff numbers
0
Hindustan Unilever employees.
Industry
Household Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/17 12:44
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/07/24
Last earnings filing: 2019/06/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.