BSE:500696

Stock Analysis Report

Hindustan Unilever

Executive Summary

Hindustan Unilever Limited, a consumer goods company, manufactures and sells home and personal care, food, and refreshment products in India and internationally.

Rewards

Earnings are forecast to grow 18.34% per year

Earnings grew by 17.4% over the past year

Pays a high and reliable dividend of 1.09%

Risk Analysis

No risks detected for 500696 from our risk checks.


Snowflake Analysis

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


Similar Companies

Share Price & News

How has Hindustan Unilever's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500696 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

500696

0.4%

IN Household Products

-0.7%

IN Market


1 Year Return

18.3%

500696

16.0%

IN Household Products

8.2%

IN Market

Return vs Industry: 500696 exceeded the Indian Household Products industry which returned 15.1% over the past year.

Return vs Market: 500696 exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

500696IndustryMarket
7 Day0.7%0.4%-0.7%
30 Day6.5%5.7%2.5%
90 Day-3.3%-4.1%5.8%
1 Year19.7%18.3%17.4%16.0%10.1%8.2%
3 Year152.4%142.2%139.3%129.8%30.2%23.4%
5 Year140.5%122.2%132.2%114.7%34.8%22.8%

Price Volatility Vs. Market

How volatile is Hindustan Unilever's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hindustan Unilever undervalued compared to its fair value and its price relative to the market?

67.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500696 (₹2020.45) is trading above our estimate of fair value (₹856.89)

Significantly Below Fair Value: 500696 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500696 is poor value based on its PE Ratio (66.1x) compared to the Household Products industry average (26.6x).

PE vs Market: 500696 is poor value based on its PE Ratio (66.1x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: 500696 is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: 500696 is overvalued based on its PB Ratio (54.4x) compared to the IN Household Products industry average (1.2x).


Next Steps

Future Growth

How is Hindustan Unilever forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500696's forecast earnings growth (18.3% per year) is above the savings rate (6.5%).

Earnings vs Market: 500696's earnings (20.7% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: 500696's earnings are forecast to grow, but not significantly.

Revenue vs Market: 500696's revenue (12.8% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: 500696's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500696's Return on Equity is forecast to be very high in 3 years time (81%).


Next Steps

Past Performance

How has Hindustan Unilever performed over the past 5 years?

10.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500696 has high quality earnings.

Growing Profit Margin: 500696's current net profit margins (16.3%) are higher than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: 500696's earnings have grown by 10.3% per year over the past 5 years.

Accelerating Growth: 500696's earnings growth over the past year (17.4%) exceeds its 5-year average (10.3% per year).

Earnings vs Industry: 500696 earnings growth over the past year (17.4%) exceeded the Household Products industry -26.8%.


Return on Equity

High ROE: 500696's Return on Equity (82.3%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hindustan Unilever's financial position?


Financial Position Analysis

Short Term Liabilities: 500696's short term assets (₹130.9B) exceed its short term liabilities (₹98.2B).

Long Term Liabilities: 500696's short term assets (₹130.9B) exceed its long term liabilities (₹27.8B).


Debt to Equity History and Analysis

Debt Level: 500696's debt to equity ratio (1%) is considered satisfactory.

Reducing Debt: 500696's debt to equity ratio has reduced from 1.2% to 1% over the past 5 years.

Debt Coverage: 500696's debt is well covered by operating cash flow (8855.7%).

Interest Coverage: 500696 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500696 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500696's debt is covered by short term assets (assets are 165.7x debt).


Next Steps

Dividend

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

1.06%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%0.6%markettop25%2.3%industryaverage1.4%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: 500696's dividend (1.09%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 500696's dividend (1.09%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: 500696's dividends per share have been stable in the past 10 years.

Growing Dividend: 500696's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72%), 500696's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500696's dividends in 3 years are forecast to be covered by earnings (76.2% payout ratio).


Next Steps

Management

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

3.9yrs

Average management tenure


CEO

Sanjiv Mehta (59yo)

6.3yrs

Tenure

₹188,800,000

Compensation

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, 201 ...


CEO Compensation Analysis

Compensation vs Market: Sanjiv's total compensation ($USD2.66M) is above average for companies of similar size in the Indian market ($USD1.12M).

Compensation vs Earnings: Sanjiv's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.9yrs

Average Tenure

53yo

Average Age

Experienced Management: 500696's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

4.1yrs

Average Tenure

63yo

Average Age

Experienced Board: 500696's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹17,114,97730 Sep 19
N. Seetharam
EntityIndividual
Shares8,500
Max Price₹2,013.53
Sell₹1,603,35506 Sep 19
Vipul Chaturvedi
EntityIndividual
Shares850
Max Price₹1,886.30
Sell₹3,730,00023 Aug 19
Vikram Sridharan
EntityIndividual
Shares2,000
Max Price₹1,865.00
Sell₹17,831,24001 Aug 19
Krishnan Sundaram
EntityIndividual
Shares10,367
Max Price₹1,720.00
Sell₹1,111,00028 Jun 19
R. Subramanian
EntityIndividual
Shares612
Max Price₹1,815.36
Sell₹3,692,00011 Jun 19
Ankush Punj
EntityIndividual
Shares2,000
Max Price₹1,846.00
Buy₹3,570,87307 Jun 19
Aniket Gandhi
EntityIndividual
Shares2,000
Max Price₹1,785.44
Sell₹1,800,00004 Jun 19
Shilpa Vora
EntityIndividual
Shares994
Max Price₹1,810.87
Sell₹12,663,30025 Mar 19
Sudhir Sitapati
EntityIndividual
Shares7,449
Max Price₹1,700.00
Sell₹1,699,10011 Mar 19
Priya Nair
EntityIndividual
Shares1,000
Max Price₹1,699.10

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Dev Bajpai (53yo)

    Executive Director of Legal & Corp. Affairs

    • Tenure: 3yrs
    • Compensation: ₹67.50m
  • Nitin Paranjpe (55yo)

    President of Foods & Refreshment for Unilever

    • Tenure: 6.3yrs
  • Sanjiv Mehta (59yo)

    Chairman

    • Tenure: 6.3yrs
    • Compensation: ₹188.80m
  • Samir Singh

    Global Executive Vice President of Skin Cleansing

    • Tenure: 3.9yrs
    • Compensation: ₹61.00m
  • Srinandan Sundaram (44yo)

    Executive Director of Sales & Customer Development

    • Suman Hegde

      Group Controller

      • Tenure: 1.8yrs
    • Srinivas Phatak (48yo)

      Executive Director of Finance & IT

      • Tenure: 2.1yrs
      • Compensation: ₹49.20m
    • Anuradha Razdan

      Executive Director of Human Resources

      • Tenure: 0.6yrs
    • Willem Uijen

      Executive Director of Supply Chain & Whole Time Director


      Board Members

      • Kalpana Morparia (70yo)

        Independent Director

        • Tenure: 5.3yrs
        • Compensation: ₹2.16m
      • Om Bhatt (68yo)

        Independent Director

        • Tenure: 8.1yrs
        • Compensation: ₹3.38m
      • Dev Bajpai (53yo)

        Executive Director of Legal & Corp. Affairs

        • Tenure: 3yrs
        • Compensation: ₹67.50m
      • Leo Puri (58yo)

        Independent Director

        • Tenure: 1.3yrs
        • Compensation: ₹1.72m
      • Sanjiv Misra (71yo)

        Independent Director

        • Tenure: 6.8yrs
        • Compensation: ₹3.02m
      • Sanjiv Mehta (59yo)

        Chairman

        • Tenure: 6.3yrs
        • Compensation: ₹188.80m
      • Aditya Narayan (67yo)

        Independent Director

        • Tenure: 18.6yrs
        • Compensation: ₹3.12m
      • Srinivas Phatak (48yo)

        Executive Director of Finance & IT

        • Tenure: 2.1yrs
        • Compensation: ₹49.20m
      • Willem Uijen

        Executive Director of Supply Chain & Whole Time Director

        Company Information

        Hindustan Unilever Limited's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Hindustan Unilever Limited
        • Ticker: 500696
        • Exchange: BSE
        • Founded: 1931
        • Industry: Household Products
        • Sector: Household
        • Market Cap: ₹4.452t
        • Shares outstanding: 2.16b
        • Website: https://www.hul.co.in

        Location

        • Hindustan Unilever Limited
        • Unilever House
        • B. D. Sawant Marg
        • Mumbai
        • Maharashtra
        • 400099
        • India

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        500696BSE (Mumbai Stock Exchange)YesOrdinary SharesININRJan 1991
        HINDUNILVRNSEI (National Stock Exchange of India)YesOrdinary SharesININRJan 1991

        Biography

        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. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/24 12:47
        End of Day Share Price2020/01/24 00:00
        Earnings2019/09/30
        Annual Earnings2019/03/31


        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.