FINANCIAL

MODELLING REPORT
Prepared By
ARAFIN MALLICK

Hindustan Unilever Ltd

NSE: HINDUNILVR | BSE CODE: 500696
 Table of
CONTENTS
1 One Page Profile
2 Historical Financial Statement
3 Ratio Analysis
4 Common Size Income Statement
5 Forecasting
6 Weighted Average Cost of Capital
7 Intrinsic Growth
8 Discounted Cash Flow (DCF) Valuation
9 Comparative Comps Valuation
10 Football Field Analysis
11 Beta Drifting
12 Market Return
13 Value At Risk (VAR)
14 Dupont Analysis
15 Altman’s Z Score
 HINDUSTAN UNILEVER LTD - One Page Profile

Hindustan Unilever Limited (HUL) is the Indian subsidiary of Unilever, one of the world's leading consumer goods companies.
Established in 1933, HUL is a major player in India's fast-moving consumer goods (FMCG) sector. Headquartered in Mumbai,
Maharashtra, the company offers a diverse range of products across categories like personal care, home care, food, and beverages.
Some of their most popular brands in India include Dove, Surf Excel, Lifebuoy, and Lipton. The company was incorporated on 17
October 1933 as Lever Brothers India Limited and later became Hindustan Unilever Limited in 2007. As of 2020, Unilever holds a
61.90% stake in HUL. The company operates 28 manufacturing units across India, serving millions of consumers.
INR (Crs)
Key Financial Metrics Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Share Price- 5Y
Total Sales 39,783 47,028 52,446 60,580 61,896 3,500.00
Sales Growth (y-o-y) 1.20% 18.21% 11.52% 15.51% 2.17% 3,000.00
Gross Profit Margins 48.18% 46.20% 44.58% 41.60% 45.63% 2,500.00
EBITDA Margins 24.79% 24.72% 24.51% 23.35% 23.68% 2,000.00
EBIT Margins 22.27% 22.44% 22.43% 21.48% 21.72% 1,500.00
Net Profit Margins 15.92% 16.65% 16.54% 16.00% 15.29% 1,000.00
Earnings Per Share (In Rs) 29.25 33.32 36.91 41.26 40.28 500.00
EPS Growth (y-o-y) 10.35% 13.92% 10.78% 11.78% -2.37% 0.00
Dividend Per Share 24.94 40.51 34.01 39.01 42.01 2020 2021 2022 2023 2024
DPS Growth (y-o-y) 13.63% 62.39% -16.05% 14.71% 7.69%

Key Financial Ratios Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Volume- 5Y

Price to Earnings 95.15x 83.52x 75.39x 67.45x 69.09x 80
EV/ EBITDA 47.92x 48.07x 36.63x 41.05x 34.00x 60
EV/ Sales 12.38x 12.05x 9.12x 9.87x 8.50x 40
Price to Book Value 60.47x 11.98x 9.81x 11.96x 10.39x 20
Return on Equity (%) 3124.07% 3402.13% 3778.30% 4306.38% 4373.19% 0
Return on Capital Employed (%) 107.66% 22.13% 23.48% 25.25% 25.51% 2024 2023 2022 2022 2021

Top 10 Shareholders Number Of Shares (in Crs) % Holding Market Value (in Crs) Shareholding Pattern
Unilever Plc 145.44 61.90% 404760
SBI Funds Management Ltd. 3.83 1.63% 10659 Public &
12.16%
UTI Asset Management Co. Ltd. (Investment Management) 1.16 0.49% 3228 Government
Nippon Life India Asset Management Ltd. (Invt Mgmt) 0.90 0.38% 2505
ICICI Prudential Life Insurance Co. Ltd. (Invt Port) 0.82 0.35% 2282 DIIs 14.09%

Government of India 0.57 0.24% 1586

quant Money Managers Ltd. 0.45 0.19% 1252 FIIs 11.87%
DSP Asset Managers Pvt. Ltd. 0.44 0.19% 1225
Aditya Birla Sun Life Amc Ltd. (Investment Management) 0.39 0.17% 1085 Promoters 61.90%
Axis Asset Management Co. Ltd. 0.35 0.15% 974

Managerial Remuneration Designation Remuneration Salary Capital Structure

Rohit Jawa CEO and MD 22.39 153.03x Share Price as on 11-10-2024 2783
Sanjiv Mehta CEO and MD 1.76 48.33x Number of Shares o/s 239
Ritesh Tiwari Executive Director (ED) and CFO 8.56 58.47x Market Capitalization 665,710
Dev Bajpai ED and Co. Secretary 10.38 70.93x Less: Cash & Equivalents (7,559)
The percentage increase in the median remuneration of employees for the financial year was 7.38%. Add: Total Debt (1,484)
The Company
Average hasmade
increase 7,215in
permanent employees
the salaries on the
of employees rolls of Company as on 31st March, 2024.
other Add: Minority Interest 205
than the managerial personnel in the financial year was 4.4% Enterprise Value 656,872

Recent Updates
The company reported a 2.7 per cent increase in standalone net profit, reaching Rs 2,538 crore in Q1FY25 compared to Rs 2,472 crore in the same period last year.
Revenue from operations rise by 1.3 per cent to Rs 15,399 crore, up from Rs 15,148 crore in the corresponding period last year.
Total expenses for the quarter increased by 1.8 per cent year-on-year to Rs 12,385 crore.
The home-care segment's underlying sales growth (USG) grew 4 percent and underlying volume growth (UVG) saw high-single digit growth.
High single digit volume growth in fabric wash and household care grew mid-single digit on the back of strong premium and mass brands.
Beauty and personal care USG grew 3% and UVG grew at mid-single digit growth.
Hair Care saw double-digit underlying volume growth led by Clinic Plus, Sunsilk and Dove.
Skin care and colour cosmetics witnessed muted volume performance in the quarter with mass portfolio declining.

Sources
Data: HINDUSTAN UNILEVER LTD Annual Report, Screener.in, Yahoo Finance, Investing.com
Instructor: The Valuation School
Disclaimer: This company profile is made as a part of educational assignment and is meant for educational pruposes only. The author of the report is not liable for any losses due to actions taken basis this report. It is advisable to consult SEBI registered research analyst
before making any investments

Report prepared by ARAFIN MALLICK

HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Historical Financial Statement - HINDUSTAN UNILEVER LTD

Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Income Statement
Sales ₹ 31,972.2 ₹ 32,186.0 ₹ 33,162.0 ₹ 35,545.0 ₹ 39,310.0 ₹ 39,783.0 ₹ 47,028.0 ₹ 52,446.0 ₹ 60,580.0 ₹ 61,896.0
Sales Growth - 0.67% 3.03% 7.19% 10.59% 1.20% 18.21% 11.52% 15.51% 2.17%

COGS ₹ 18,801.9 ₹ 18,222.0 ₹ 18,675.0 ₹ 19,314.0 ₹ 21,081.0 ₹ 20,614.0 ₹ 25,301.0 ₹ 29,066.0 ₹ 35,381.0 ₹ 33,651.0
COGS % Sales 58.81% 56.61% 56.31% 54.34% 53.63% 51.82% 53.80% 55.42% 58.40% 54.37%

Gross Profit ₹ 13,170.3 ₹ 13,964.0 ₹ 14,487.0 ₹ 16,231.0 ₹ 18,229.0 ₹ 19,169.0 ₹ 21,727.0 ₹ 23,380.0 ₹ 25,199.0 ₹ 28,245.0
Gross Margin 41.19% 43.39% 43.69% 45.66% 46.37% 48.18% 46.20% 44.58% 41.60% 45.63%

Selling & General Expenses ₹ 7,757.9 ₹ 8,054.0 ₹ 8,159.0 ₹ 8,732.0 ₹ 9,349.0 ₹ 9,308.0 ₹ 10,101.0 ₹ 10,523.0 ₹ 11,052.0 ₹ 13,586.0
S&G Expenses % Sales 24.26% 25.02% 24.60% 24.57% 23.78% 23.40% 21.48% 20.06% 18.24% 21.95%

EBITDA ₹ 5,412.4 ₹ 5,910.0 ₹ 6,328.0 ₹ 7,499.0 ₹ 8,880.0 ₹ 9,861.0 ₹ 11,626.0 ₹ 12,857.0 ₹ 14,147.0 ₹ 14,659.0
EBITDA Margins 16.93% 18.36% 19.08% 21.10% 22.59% 24.79% 24.72% 24.51% 23.35% 23.68%

Interest ₹ 17.7 ₹ 17.0 ₹ 35.0 ₹ 26.0 ₹ 33.0 ₹ 118.0 ₹ 117.0 ₹ 106.0 ₹ 114.0 ₹ 334.0
Interest % Sales 0.06% 0.05% 0.11% 0.07% 0.08% 0.30% 0.25% 0.20% 0.19% 0.54%

Depreciation ₹ 322.4 ₹ 353.0 ₹ 432.0 ₹ 520.0 ₹ 565.0 ₹ 1,002.0 ₹ 1,074.0 ₹ 1,091.0 ₹ 1,137.0 ₹ 1,216.0
Depreciation % Sales 1.01% 1.10% 1.30% 1.46% 1.44% 2.52% 2.28% 2.08% 1.88% 1.96%

EBT ₹ 5,072.3 ₹ 5,540.0 ₹ 5,861.0 ₹ 6,953.0 ₹ 8,282.0 ₹ 8,741.0 ₹ 10,435.0 ₹ 11,660.0 ₹ 12,896.0 ₹ 13,109.0
EBT % Sales 15.86% 17.21% 17.67% 19.56% 21.07% 21.97% 22.19% 22.23% 21.29% 21.18%

Tax ₹ 1,944.0 ₹ 1,875.0 ₹ 1,977.0 ₹ 2,079.0 ₹ 2,544.0 ₹ 2,409.0 ₹ 2,606.0 ₹ 2,987.0 ₹ 3,201.0 ₹ 3,644.0
Effective Tax Rate 38.33% 33.84% 33.73% 29.90% 30.72% 27.56% 24.97% 25.62% 24.82% 27.80%

Net Profit ₹ 3,128.3 ₹ 3,665.0 ₹ 3,884.0 ₹ 4,874.0 ₹ 5,738.0 ₹ 6,332.0 ₹ 7,829.0 ₹ 8,673.0 ₹ 9,695.0 ₹ 9,465.0
Net Margins 9.78% 11.39% 11.71% 13.71% 14.60% 15.92% 16.65% 16.54% 16.00% 15.29%

Number of Equity Shares ₹ 216.4 ₹ 216.4 ₹ 216.4 ₹ 216.5 ₹ 216.5 ₹ 216.5 ₹ 235.0 ₹ 235.0 ₹ 235.0 ₹ 235.0

Earning Per Share ₹ 14.5 ₹ 16.9 ₹ 17.9 ₹ 22.5 ₹ 26.5 ₹ 29.2 ₹ 33.3 ₹ 36.9 ₹ 41.3 ₹ 40.3
EPS Growth % - 17.13% 5.96% 25.48% 17.72% 10.35% 13.92% 10.78% 11.78% -2.37%

Dividend Per Share ₹ 15.0 ₹ 16.0 ₹ 17.0 ₹ 20.0 ₹ 22.0 ₹ 24.9 ₹ 40.5 ₹ 34.0 ₹ 39.0 ₹ 42.0
Dividend Payout Ratio 103.74% 94.30% 94.54% 88.63% 82.82% 85.28% 121.57% 92.12% 94.53% 104.28%

Retained Earnings 0.00% 5.70% 5.46% 11.37% 17.18% 14.72% 0.00% 7.88% 5.47% 0.00%

Balance Sheet
Equity Share Capital ₹ 216.4 ₹ 216.0 ₹ 216.0 ₹ 216.0 ₹ 216.0 ₹ 216.0 ₹ 235.0 ₹ 235.0 ₹ 235.0 ₹ 235.0
Reserves ₹ 3,811.1 ₹ 6,357.0 ₹ 6,528.0 ₹ 7,065.0 ₹ 7,651.0 ₹ 8,013.0 ₹ 47,439.0 ₹ 48,826.0 ₹ 50,069.0 ₹ 50,983.0
Borrowings ₹ 43.0 ₹ 177.0 ₹ 277.0 - ₹ 99.0 - - ₹ 1,043.0 ₹ 1,219.0 ₹ 1,484.0
Other Liabilities ₹ 10,359.0 ₹ 8,043.0 ₹ 8,685.0 ₹ 10,581.0 ₹ 10,663.0 ₹ 11,924.0 ₹ 21,066.0 ₹ 20,402.0 ₹ 21,554.0 ₹ 25,787.0
Total Liabilities ₹ 14,429.5 ₹ 14,793.0 ₹ 15,706.0 ₹ 17,862.0 ₹ 18,629.0 ₹ 20,153.0 ₹ 68,740.0 ₹ 70,506.0 ₹ 73,077.0 ₹ 78,489.0

Fixed Assets Net Block ₹ 2,821.0 ₹ 3,258.0 ₹ 4,419.0 ₹ 4,528.0 ₹ 4,715.0 ₹ 5,479.0 ₹ 51,443.0 ₹ 51,473.0 ₹ 52,678.0 ₹ 53,744.0
Capital Work in Progress ₹ 516.3 ₹ 408.0 ₹ 229.0 ₹ 461.0 ₹ 406.0 ₹ 597.0 ₹ 745.0 ₹ 1,313.0 ₹ 1,132.0 ₹ 1,025.0
Investments ₹ 3,025.1 ₹ 2,592.0 ₹ 3,794.0 ₹ 2,873.0 ₹ 2,716.0 ₹ 1,255.0 ₹ 2,709.0 ₹ 3,521.0 ₹ 2,882.0 ₹ 4,625.0
Other Assets ₹ 1,518.6 ₹ 1,536.0 ₹ 1,810.0 ₹ 2,692.0 ₹ 2,645.0 ₹ 3,793.0 ₹ 4,035.0 ₹ 4,021.0 ₹ 4,377.0 ₹ 4,517.0
Total Non- Current Assets ₹ 7,881.0 ₹ 7,794.0 ₹ 10,252.0 ₹ 10,554.0 ₹ 10,482.0 ₹ 11,124.0 ₹ 58,932.0 ₹ 60,328.0 ₹ 61,069.0 ₹ 63,911.0

Receivables ₹ 1,010.3 ₹ 1,264.0 ₹ 1,085.0 ₹ 1,310.0 ₹ 1,816.0 ₹ 1,149.0 ₹ 1,758.0 ₹ 2,236.0 ₹ 3,079.0 ₹ 2,997.0
Inventory ₹ 2,848.8 ₹ 2,726.0 ₹ 2,541.0 ₹ 2,513.0 ₹ 2,574.0 ₹ 2,767.0 ₹ 3,579.0 ₹ 4,096.0 ₹ 4,251.0 ₹ 4,022.0
Cash & Bank ₹ 2,689.5 ₹ 3,009.0 ₹ 1,828.0 ₹ 3,485.0 ₹ 3,757.0 ₹ 5,113.0 ₹ 4,471.0 ₹ 3,846.0 ₹ 4,678.0 ₹ 7,559.0
Total Current Assets ₹ 6,548.6 ₹ 6,999.0 ₹ 5,454.0 ₹ 7,308.0 ₹ 8,147.0 ₹ 9,029.0 ₹ 9,808.0 ₹ 10,178.0 ₹ 12,008.0 ₹ 14,578.0

Total Assets ₹ 14,429.5 ₹ 14,793.0 ₹ 15,706.0 ₹ 17,862.0 ₹ 18,629.0 ₹ 20,153.0 ₹ 68,740.0 ₹ 70,506.0 ₹ 73,077.0 ₹ 78,489.0

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE

Cash Flow Statement

Operating Activities
Profit from operations ₹ 5,510.0 ₹ 6,025.0 ₹ 6,512.0 ₹ 7,485.0 ₹ 8,909.0 ₹ 9,723.0 ₹ 11,672.0 ₹ 12,829.0 ₹ 14,089.0 ₹ 14,537.0
Receivables ₹ 3.0 (₹ 257.0) ₹ 173.0 - - - - - - -
Inventory ₹ 91.0 ₹ 89.0 ₹ 37.0 (₹ 146.0) (₹ 195.0) (₹ 331.0) (₹ 543.0) (₹ 758.0) (₹ 339.0) ₹ 74.0
Payables (₹ 327.0) ₹ 164.0 ₹ 501.0 - - - - - - -
Loans Advances (₹ 148.0) - - - - - - - - -
Deposits - - (₹ 46.0) - - - - - - -
Other WC items ₹ 38.0 (₹ 77.0) (₹ 99.0) ₹ 982.0 (₹ 147.0) ₹ 742.0 ₹ 442.0 (₹ 242.0) (₹ 621.0) ₹ 1,239.0
Working capital changes (₹ 342.0) (₹ 81.0) ₹ 566.0 ₹ 836.0 (₹ 342.0) ₹ 411.0 (₹ 101.0) (₹ 1,000.0) (₹ 960.0) ₹ 1,313.0
Direct taxes (₹ 1,862.0) (₹ 1,765.0) (₹ 1,859.0) (₹ 2,264.0) (₹ 2,767.0) (₹ 2,505.0) (₹ 2,407.0) (₹ 2,784.0) (₹ 3,138.0) (₹ 381.0)
Other operating items -14 -8 -21 0 0 0 0 0 0 0
Exceptional CF items 0 0 -13 2 0 -6 -1 3 0 0
Cash from Operating Activity ₹ 2,949.0 ₹ 4,090.0 ₹ 5,751.0 ₹ 6,895.0 ₹ 5,458.0 ₹ 8,034.0 ₹ 9,062.0 ₹ 8,048.0 ₹ 9,031.0 ₹ 16,782.0

Investing Activities
Fixed assets purchased (₹ 606.0) (₹ 810.0) (₹ 1,113.0) (₹ 895.0) (₹ 767.0) (₹ 862.0) (₹ 4,163.0) (₹ 1,228.0) (₹ 1,192.0) (₹ 1,477.0)
Fixed assets sold ₹ 560.0 ₹ 99.0 ₹ 176.0 ₹ 32.0 ₹ 13.0 ₹ 52.0 ₹ 97.0 ₹ 175.0 ₹ 181.0 ₹ 20.0
Investments purchased (₹ 19,353.0) (₹ 20,666.0) (₹ 31,214.0) (₹ 51,855.0) (₹ 74,365.0) (₹ 36,090.0) (₹ 39,920.0) (₹ 48,522.0) (₹ 22,649.0) (₹ 21,337.0)
Investments sold ₹ 19,461.0 ₹ 20,937.0 ₹ 30,083.0 ₹ 52,897.0 ₹ 74,691.0 ₹ 37,690.0 ₹ 38,486.0 ₹ 47,786.0 ₹ 23,462.0 ₹ 19,846.0
Interest received ₹ 218.0 ₹ 315.0 ₹ 264.0 ₹ 297.0 ₹ 289.0 ₹ 351.0 ₹ 277.0 ₹ 161.0 ₹ 259.0 ₹ 425.0
Dividends received ₹ 24.0 ₹ 33.0 ₹ 14.0 - ₹ 1.0 ₹ 1.0 ₹ 1.0 ₹ 1.0 ₹ 2.0 ₹ 3.0
Invest in subsidiaries - - - - - - - - - -
Loans to subsidiaries - - - - - - - - - -
Redemp n Canc of Shares ₹ 200.0 ₹ 161.0 ₹ 20.0 ₹ 73.0 - - - - - -
Acquisition of companies - - - - - - - - (₹ 334.0) -
Other investing items (₹ 367.0) (₹ 351.0) ₹ 597.0 (₹ 1,612.0) (₹ 300.0) ₹ 649.0 ₹ 3,994.0 (₹ 101.0) (₹ 1,213.0) (₹ 2,804.0)
Cash from Investing Activity ₹ 137.0 (₹ 282.0) (₹ 1,173.0) (₹ 1,063.0) (₹ 438.0) ₹ 1,791.0 (₹ 1,228.0) (₹ 1,728.0) (₹ 1,484.0) (₹ 5,324.0)

Financing Activities
Proceeds from shares ₹ 2.0 - - - - - - - - -
Proceeds from borrowings - ₹ 177.0 ₹ 460.0 - ₹ 99.0 - ₹ 188.0 ₹ 55.0 ₹ 286.0 -
Repayment of borrowings (₹ 3.0) - (₹ 360.0) (₹ 277.0) - (₹ 99.0) (₹ 188.0) (₹ 55.0) (₹ 208.0) (₹ 85.0)
Interest paid fin (₹ 18.0) (₹ 2.0) (₹ 14.0) (₹ 6.0) (₹ 7.0) (₹ 90.0) (₹ 92.0) (₹ 82.0) (₹ 88.0) (₹ 110.0)
Dividends paid (₹ 2,912.0) (₹ 3,354.0) (₹ 3,572.0) (₹ 3,911.0) (₹ 4,554.0) (₹ 5,196.0) (₹ 8,811.0) (₹ 7,526.0) (₹ 8,474.0) (₹ 9,416.0)
Financial liabilities - - - - - (₹ 373.0) (₹ 406.0) (₹ 407.0) (₹ 467.0) (₹ 423.0)
Other financing items (₹ 533.0) (₹ 685.0) (₹ 728.0) (₹ 781.0) (₹ 928.0) (₹ 1,061.0) - - (₹ 2.0) -
Cash from Financing Activity (₹ 3,464.0) (₹ 3,864.0) (₹ 4,214.0) (₹ 4,975.0) (₹ 5,390.0) (₹ 6,819.0) (₹ 9,309.0) (₹ 8,015.0) (₹ 8,953.0) (₹ 10,034.0)

Net Cash Flow (₹ 378.0) (₹ 56.0) ₹ 364.0 ₹ 857.0 (₹ 370.0) ₹ 3,006.0 (₹ 1,475.0) (₹ 1,695.0) (₹ 1,406.0) ₹ 1,424.0
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Ratio Analysis - HINDUSTAN UNILEVER LTD

Years Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Trend Mean Median

Sales Growth - 0.67% 3.03% 7.19% 10.59% 1.20% 18.21% 11.52% 15.51% 2.17% 7.79% 7.19%
EBITDA Growth - 9.19% 7.07% 18.51% 18.42% 11.05% 17.90% 10.59% 10.03% 3.62% 11.82% 10.59%
EBIT Growth - 9.22% 5.79% 18.63% 19.11% 5.54% 19.38% 11.74% 10.60% 1.65% 11.30% 10.60%
Net Profit Growth - 17.16% 5.98% 25.49% 17.73% 10.35% 23.64% 10.78% 11.78% -2.37% 13.39% 11.78%
Dividend Growth - 6.47% 6.23% 17.64% 9.99% 13.63% 62.39% -16.05% 14.71% 7.69% 13.63% 9.99%

Gross Margin 41.19% 43.39% 43.69% 45.66% 46.37% 48.18% 46.20% 44.58% 41.60% 45.63% 44.65% 45.11%
EBTIDA Margin 16.93% 18.36% 19.08% 21.10% 22.59% 24.79% 24.72% 24.51% 23.35% 23.68% 21.91% 22.97%
EBIT Margin 15.92% 17.27% 17.78% 19.63% 21.15% 22.27% 22.44% 22.43% 21.48% 21.72% 20.21% 21.31%
EBT Margin 15.86% 17.21% 17.67% 19.56% 21.07% 21.97% 22.19% 22.23% 21.29% 21.18% 20.02% 21.12%
Net Profit Margin 9.78% 11.39% 11.71% 13.71% 14.60% 15.92% 16.65% 16.54% 16.00% 15.29% 14.16% 14.94%

Sales Expenses % Sales 24.26% 25.02% 24.60% 24.57% 23.78% 23.40% 21.48% 20.06% 18.24% 21.95% 22.74% 23.59%
Depreciation % Sales 1.01% 1.10% 1.30% 1.46% 1.44% 2.52% 2.28% 2.08% 1.88% 1.96% 1.70% 1.67%
Operating Income % Sales 15.92% 17.27% 17.78% 19.63% 21.15% 22.27% 22.44% 22.43% 21.48% 21.72% 20.21% 21.31%

Return on Capital Employed 125.05% 82.33% 83.98% 95.85% 104.38% 107.66% 22.13% 23.48% 25.25% 25.51% 69.56% 83.15%
Retained Earnings % 0.00% 5.70% 5.46% 11.37% 17.18% 14.72% 0.00% 7.88% 5.47% 0.00% 6.78% 5.58%
Return on Equity % 77.67% 55.76% 57.59% 66.94% 72.94% 76.95% 16.42% 17.68% 19.27% 18.48% 47.97% 56.68%
Self Suistained Growth Rate 0.00% 3.18% 3.14% 7.61% 12.53% 11.33% 0.00% 1.39% 1.05% 0.00% 4.02% 2.27%
Interest Coverage Ratio 287.57x 326.88x 168.46x 268.42x 251.97x 75.08x 90.19x 111.00x 114.12x 40.25x 173.39x 141.29x

Debtor Turnover Ratio 31.65x 25.46x 30.56x 27.13x 21.65x 34.62x 26.75x 23.46x 19.68x 20.65x 26.16x 26.11x
Creditor Turnover Ratio 3.09x 4.00x 3.82x 3.36x 3.69x 3.34x 2.23x 2.57x 2.81x 2.40x 3.13x 3.21x
Inventory Turnover 11.22x 11.81x 13.05x 14.14x 15.27x 14.38x 13.14x 12.80x 14.25x 15.39x 13.55x 13.64x
Fixed Asset Turnover 11.33x 9.88x 7.50x 7.85x 8.34x 7.26x 0.91x 1.02x 1.15x 1.15x 5.64x 7.38x
Capital Turnover Ratio 7.94x 4.90x 4.92x 4.88x 5.00x 4.83x 0.99x 1.07x 1.20x 1.21x 3.69x 4.86x

(in days)
Debtor Days 12 14 12 13 17 11 14 16 19 18 14 14
Payable Days 118 91 96 109 99 109 164 142 130 152 121 114
Inventory Days 33 31 28 26 24 25 28 29 26 24 27 27
Cash Coversion Cycle -74 -46 -56 -69 -58 -73 -122 -98 -86 -111 -79 -74

CFO/ Sales 10.30% 12.96% 15.64% 17.05% 14.75% 19.16% 19.48% 17.25% 16.49% 24.99% 16.81% 16.77%
CFO/ Total Assets 22.81% 28.20% 33.01% 33.92% 31.13% 37.83% 13.33% 12.83% 13.67% 19.71% 24.64% 25.51%
CFO/ Total Debt 7648.70% 2356.50% 1871.84% 0.00% 5858.59% 0.00% 0.00% 867.50% 819.61% 1042.39% 2046.51% 954.94%
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Common Size Income Statement - HINDUSTAN UNILEVER LTD

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 42.25% 40.96% 41.03% 40.04% 40.31% 39.46% 42.83% 43.61% 46.92% 43.33%
Change in Inventory -0.18% -0.26% -0.43% 0.20% -0.03% 0.27% 0.86% 0.04% 0.12% 0.02%
Power and Fuel 1.09% 0.96% 0.89% 0.83% 0.78% 0.75% 0.72% 0.61% 0.63% 0.72%
Other Mfr. Exp 9.90% 9.22% 8.71% 8.43% 7.74% 7.30% 6.10% 6.40% 6.26% 5.47%
Employee Cost 5.39% 5.22% 5.26% 5.23% 4.77% 4.57% 5.01% 4.85% 4.71% 4.86%
Selling and admin 21.17% 20.94% 20.17% 20.40% 19.83% 19.15% 16.81% 15.57% 14.50% 17.41%
Other Expenses 3.09% 4.08% 4.43% 4.16% 3.95% 4.24% 4.67% 4.50% 3.74% 4.54%
Other Income 3.90% 1.51% 1.83% 0.99% 0.82% 1.07% 0.36% 0.42% 0.74% 1.32%
Depreciation 1.01% 1.10% 1.30% 1.46% 1.44% 2.52% 2.28% 2.08% 1.88% 1.96%
Interest 0.06% 0.05% 0.11% 0.07% 0.08% 0.30% 0.25% 0.20% 0.19% 0.54%
Profit before tax 19.77% 18.72% 19.50% 20.55% 21.89% 23.04% 22.55% 22.65% 22.03% 22.50%
Tax 6.08% 5.83% 5.96% 5.85% 6.47% 6.06% 5.54% 5.70% 5.28% 5.89%
Net profit 13.65% 12.90% 13.50% 14.67% 15.40% 16.96% 17.00% 16.93% 16.71% 16.60%
Dividend Amount 10.15% 10.74% 11.07% 12.15% 12.09% 13.57% 20.24% 15.23% 15.13% 15.95%

Balance Sheet - HINDUSTAN UNILEVER LTD

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 1.50% 1.46% 1.38% 1.21% 1.16% 1.07% 0.34% 0.33% 0.32% 0.30%
Reserves 26.41% 42.97% 41.56% 39.55% 41.07% 39.76% 69.01% 69.25% 68.52% 64.96%
Borrowings 0.30% 1.20% 1.76% 0.00% 0.53% 0.00% 0.00% 1.48% 1.67% 1.89%
Other Liabilities 71.79% 54.37% 55.30% 59.24% 57.24% 59.17% 30.65% 28.94% 29.49% 32.85%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 19.55% 22.02% 28.14% 25.35% 25.31% 27.19% 74.84% 73.01% 72.09% 68.47%
Capital Work in Progress 3.58% 2.76% 1.46% 2.58% 2.18% 2.96% 1.08% 1.86% 1.55% 1.31%
Investments 20.96% 17.52% 24.16% 16.08% 14.58% 6.23% 3.94% 4.99% 3.94% 5.89%
Other Assets 10.52% 10.38% 11.52% 15.07% 14.20% 18.82% 5.87% 5.70% 5.99% 5.75%
Receivables 7.00% 8.54% 6.91% 7.33% 9.75% 5.70% 2.56% 3.17% 4.21% 3.82%
Inventory 19.74% 18.43% 16.18% 14.07% 13.82% 13.73% 5.21% 5.81% 5.82% 5.12%
Cash & Bank 18.64% 20.34% 11.64% 19.51% 20.17% 25.37% 6.50% 5.45% 6.40% 9.63%
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

HINDUSTAN UNILEVER LTD - Sales Forecasting HINDUSTAN UNILEVER LTD - EBITDA Forecasting HINDUSTAN UNILEVER LTD - Earning Per Share Forecasting
Year Weights Year Sales Sales Growth Year Weights Year EBITDA Sales Growth Year Weights Year Sales Sales Growth
1 2015A ₹ 31,972.2 1 2015A ₹ 5,412.4 1 2015A ₹ 14.5
2 2016A ₹ 32,186.0 0.67% 2 2016A ₹ 5,910.0 9.19% 2 2016A ₹ 16.9 17.13%
3 2017A ₹ 33,162.0 3.03% 3 2017A ₹ 6,328.0 7.07% 3 2017A ₹ 17.9 5.96%
4 2018A ₹ 35,545.0 7.19% 4 2018A ₹ 7,499.0 18.51% 4 2018A ₹ 22.5 25.48%
5 2019A ₹ 39,310.0 10.59% 5 2019A ₹ 8,880.0 18.42% 5 2019A ₹ 26.5 17.72%
6 2020A ₹ 39,783.0 1.20% 6 2020A ₹ 9,861.0 11.05% 6 2020A ₹ 29.2 10.35%
7 2021A ₹ 47,028.0 18.21% 7 2021A ₹ 11,626.0 17.90% 7 2021A ₹ 33.3 13.92%
8 2022A ₹ 52,446.0 11.52% 8 2022A ₹ 12,857.0 10.59% 8 2022A ₹ 36.9 10.78%
9 2023A ₹ 60,580.0 15.51% 9 2023A ₹ 14,147.0 10.03% 9 2023A ₹ 41.3 11.78%
10 2024A ₹ 61,896.0 2.17% 10 2024A ₹ 14,659.0 3.62% 10 2024A ₹ 40.3 -2.37%
11 2025E ₹ 63,371.3 2.38% 11 2025E ₹ 15,947.4 8.79% 11 2025E ₹ 45.7 13.44%
12 2026E ₹ 67,004.1 5.73% 12 2026E ₹ 17,080.1 7.10% 12 2026E ₹ 48.9 7.06%
13 2027E ₹ 70,636.9 5.42% 13 2027E ₹ 18,212.7 6.63% 13 2027E ₹ 52.2 6.60%
14 2028E ₹ 74,269.7 5.14% 14 2028E ₹ 19,345.4 6.22% 14 2028E ₹ 55.4 6.19%
15 2029E ₹ 77,902.6 4.89% 15 2029E ₹ 20,478.0 5.85% 15 2029E ₹ 58.6 5.83%

Sales EBITDA EPS

₹ 90,000.0 ₹ 25,000.0 ₹ 70.0
₹ 80,000.0 ₹ 60.0
₹ 70,000.0 ₹ 20,000.0
₹ 50.0
₹ 60,000.0
₹ 15,000.0 ₹ 40.0
₹ 50,000.0
₹ 40,000.0 ₹ 10,000.0 ₹ 30.0
₹ 30,000.0
₹ 20.0
₹ 20,000.0 ₹ 5,000.0
₹ 10,000.0 ₹ 10.0
- - -
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Weighted Average Cost of Capital

All figures are in INR unless stated otherwise

Peer Comps
Debt / Debt / Levered Unlevered
Name of the Company Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta 2 Beta 3
Hind. Unilever India 1,484.0 647,206.8 30.00% 0.23% 0.23% 0.39 0.39
Nestle India India 344.5 242,172.3 30.00% 0.14% 0.14% 0.43 0.43
Dabur India India 1,365.1 101,367.9 30.00% 1.35% 1.33% 0.76 0.75
Britannia Inds. India 2,065.0 144,613.1 30.00% 1.43% 1.41% 0.58 0.57
Godrej Consumer India 3,222.2 134,703.6 30.00% 2.39% 2.34% 0.54 0.53

Average 30.00% 1.11% 1.09% 0.54 0.54

Median 30.00% 1.35% 1.33% 0.54 0.53

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 25.40% Risk Free Rate 7.07%

Tax Rate 30.00% Equity Risk Premium 8.54%
Post Tax Cost of Debt 17.78% Levered Beta4 0.53
Cost of Equity 11.63%

Capital Structure Levered Beta

Current Target Comps Beta Unlevered Beta 0.53

Total Debt 1,484.0 0.23% 1.09% Target Debt/ Equity 1.10%
Market Capitalization 647,206.8 99.77% 98.91% Tax Rate 30%
Total Capital 648,690.8 100.00% 100.00% Levered Beta 0.53

Debt/ Equity 0.23% 1.10% Weighted Average Cost of Capital

Notes: Cost of Equity 11.63%

1. Tax Rate considered as Marginal Tax Rate for the country Equity Weight 98.91%
2. Levered Beta is based on 5 year monthly data
3. Unlevered Beta= Levered Beta/(1+(1-Tax Rate)*Debt/ Equity) Cost of Debt 17.78%
4. Levered Beta= Unlevered Beta*(1+(1-Tax Rate)*Debt/ Equity) Debt Weight 1.09%

WACC 11.69%
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Calculation of ROIC Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Current Assets
Inventories 2,767.0 3,579.0 4,096.0 4,251.0 4,022.0
Trade receivables 1,149.0 1,758.0 2,236.0 3,079.0 2,997.0
Short term loans 19.0 78.0 170.0 188.0 172.0
Other asset items 3,774.0 3,957.0 3,851.0 4,189.0 4,345.0
Total Current Assets 7,709.0 9,372.0 10,353.0 11,707.0 11,536.0

Current Liabilities
Trade Payables 7,535.0 8,802.0 9,068.0 9,574.0 10,486.0
Advance from Customers 158.0 96.0 119.0 98.0 91.0
Other liability items 4,214.0 12,148.0 11,189.0 11,664.0 15,005.0
Total Current Liabilities 11,907.0 21,046.0 20,376.0 21,336.0 25,582.0

Net Working Capital (4,198.0) (11,674.0) (10,023.0) (9,629.0) (14,046.0)

Non- Current Assets

Land 59.0 477.0 477.0 609.0 618.0
Building 2,044.0 2,602.0 2,788.0 3,101.0 3,518.0
Plant Machinery 5,001.0 6,097.0 6,566.0 7,612.0 8,832.0
Equipments 139.0 175.0 181.0 185.0 206.0
Furniture n fittings 154.0 156.0 152.0 161.0 165.0
Railway sidings - - - - -
Vehicles - - - 33.0 37.0
Intangible Assets 511.0 45,262.0 45,262.0 45,692.0 45,692.0
Other fixed assets 71.0 155.0 152.0 171.0 180.0

Gross Block 7,979.0 54,924.0 55,578.0 57,564.0 59,248.0

Accumulated Depreciation (2,500.0) (3,481.0) (4,105.0) (4,886.0) (5,504.0)
Net Non Current Assets 5,479.0 51,443.0 51,473.0 52,678.0 53,744.0

Invested Capital 1,281.0 39,769.0 41,450.0 43,049.0 39,698.0

EBIT 8,859.0 10,552.0 11,766.0 13,010.0 13,443.0

ROIC 691.57% 26.53% 28.39% 30.22% 33.86%

Calculation of Reinvestment Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Net Capex 810 4066 1053 1011 1457

Change in Working Capital (7,476.0) 1,651.0 394.0 (4,417.0)

EBIT 8,859.0 10,552.0 11,766.0 13,010.0 13,443.0

Marginal Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT (1-T) 6,644.3 7,914.0 8,824.5 9,757.5 10,082.3

Reinvestment (3,410.0) 2,704.0 1,405.0 (2,960.0)

Reinvestment Rate -43.09% 30.64% 14.40% -29.36%

4 Year Average -6.85%

4 Year Median -7.48%

Calculation of Growth Rate Dec-19 Dec-20 Dec-21 Dec-22 Dec-23

Reinvestment Rate -43.09% 30.64% 14.40% -29.36%

ROIC 26.53% 28.39% 30.22% 33.86%

Intrinsic Growth -11.43% 8.70% 4.35% -9.94%

4 Year Average -2.08%

4 Year Median -2.80%
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Calculation of PV of FCFF Mar-24A Mar-25E Mar-26E Mar-27E Mar-28E Mar-29E

EBIT 13,443.00 14,103.05 14,795.51 15,521.97 16,284.10 17,083.65

Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT (1-T) 10,082.25 10,577.29 11,096.63 11,641.48 12,213.07 12,812.74
Less: Reinvestment Rate -7.48% 7.93% 23.34% 38.74% 54.15% 54.15%
Free Cash Flow to Firm (FCFF) 10,836.37 9,738.75 8,507.22 7,131.27 5,599.69 5,874.64
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.946 0.847 0.758 0.679 0.608

PV of FCFF 9,214.83 7,206.76 5,408.64 3,802.37 3,571.41

Expected Growth 4.91%

Terminal Growth 7.60%
WACC 11.69%

Calculation of Terminal Value Sensitivity Analysis - Value of Operating Assets

109,801.53 10.69% 11.69% 12.69% 13.69%
FCFF (n+1) 5,428.17 5.60% 94036.7 83391.0 75748.2 69994.9
WACC 11.69% 6.60% 109888.2 94036.7 83391.0 75748.2
Terminal Growth Rate 7.60% 7.60% 135999.6 109888.2 94036.7 83391.0
8.60% 187098.0 135999.6 109888.2 94036.7
Terminal Value 132,575.39 9.60% 331954.9 187098.0 135999.6 109888.2

Calculation of Equity Value Per Share Sensitivity Analysis - Equity Value per Share
490.57 10.69% 11.69% 12.69% 13.69%
PV of FCFF 29,204.02 5.60% 424.7 380.2 348.2 324.2
PV of Terminal Value 80,597.50 6.60% 490.9 424.7 380.2 348.2
Value of Operating Assets 109801.53 7.60% 600.1 490.9 424.7 380.2
8.60% 813.7 600.1 490.9 424.7
Add: Cash 7,559.00 9.60% 1419.3 813.7 600.1 490.9
Less: Debt 13.00
Value of Equity 117,347.53
No. of Shares 239.21

Equity Value Per Share 490.57

Share price 2783

Discount/ Premium 5.67x
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Amount in crores
Comparable Company Valuation

Market Data Financials Valuation

Shares Shares Equity Enterprise
Company Ticker Price Outstanding Value Net Debt Value Revenue EBITDA Net Income EV/ Revenue EV/ EBITDA P/E

Hind. Unilever HINDUNILVR 2783.2 234.96 653,941 1,484 655,425 62,107 15,471 10,338 10.6x 42.4x 63.4x
Nestle India NESTLEIND 2511.8 96.42 242,188 345 242,532 19,719 4,921 3,244 12.3x 49.3x 74.8x
Varun Beverages VBL 592.35 324.87 192,437 6,761 199,198 18,052 4,360 2,468 11.0x 45.7x 80.7x
Britannia Inds. BRITANNIA 5978.5 24.09 144,022 2,065 146,087 17,009 3,417 2,184 8.6x 42.8x 66.9x
Godrej Consumer GODREJCP 1315.7 102.29 134,583 3,222 137,805 13,979 886 -429 9.9x 155.5x -321.5x
Dabur India DABUR 570.85 177.23 101,172 1,365 102,537 12,623 2,953 1,849 8.1x 34.7x 55.5x
Colgate-Palmoliv COLPAL 3689.65 27.2 100,358 72 100,430 5,853 2,076 1,414 17.2x 48.4x 71.0x
P & G Hygiene PGHH 16634.9 3.25 54,063 3 54,067 4,206 1,022 675 12.9x 52.9x 80.1x
Emami EMAMILTD 730.25 43.65 31,875 94 31,969 3,659 1,014 738 8.7x 31.5x 43.3x
Hatsun Agro Product Ltd HATSUN 1145 22.27 25,499 2,698 28,197 8,215 1,013 318 3.4x 27.8x 88.8x

High 17.2x 155.5x 88.8x

75th Percentile 12.0x 49.1x 78.8x
Average 10.3x 53.1x 30.3x
Median 10.2x 44.2x 69.0x
th
25 Percentile 8.6x 36.6x 57.4x
Low 3.4x 27.8x -321.5x

HINDUSTAN UNILEVER LTD Comparable Valuation EV/ Revenue EV/ EBITDA P/E

Implied Enterprise Value 633,843 684,132 714,434

Net Debt 1,484 1,484 1,484
Implied Market Value 632,359 682,648 712,950
Shares Outstanding 234.96 234.96 234.96

Implied Value Per Share 2691.3 2905.4 3034.3

Source:Screener.in
Overvalued Undervalued Undervalued
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Football Field Analysis- Data

Football Field Analysis - Valuation Summary (Rs) OpenLow Low OpenHigh High
3,500.0 Comps 2,691.3 2,691.3 3,034.3 3,034.3
3,034.3 3,035.0
DCF Bear 324.2 324.2 490.9 490.9
3,000.0
DCF Base 380.2 380.2 813.7 813.7
2,500.0 DCF Bull 424.7 424.7 1,419.3 1,419.3
2,691.3
52 W H/L 2,170.0 2,170.0 3,035.0 3,035.0
2,000.0
2,170.0
1,419.3
1,500.0

1,000.0 813.7
490.9
500.0

324.2 380.2 424.7

0.0
Comps DCF Bear DCF Base DCF Bull 52 W H/L
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Regression Beta- 2 Year Weekly

HINDUSTAN UNILEVER LTD Weekly Returns Nifty 50 Weekly Returns Beta Drifting

Date Closing Price Return Closing Price Return Levered Raw Beta 0.39
16-10-2022 2,653.9 17,576.3 Raw Beta Weight 75.00%
23-10-2022 2,524.3 -4.89% 17,786.8 1.20%
30-10-2022 2,520.4 -0.15% 18,117.2 1.86% Market Beta 1.00
06-11-2022 2,503.1 -0.69% 18,349.7 1.28% Market Beta Weight 25.00%
13-11-2022 2,483.7 -0.77% 18,307.7 -0.23%
20-11-2022 2,537.5 2.16% 18,512.8 1.12% Adjusted Beta 0.54
27-11-2022 2,615.1 3.06% 18,696.1 0.99%
04-12-2022 2,722.3 4.10% 18,496.6 -1.07%
11-12-2022 2,671.3 -1.87% 18,269.0 -1.23%
18-12-2022 2,621.1 -1.88% 17,806.8 -2.53%
25-12-2022 2,561.1 -2.29% 18,105.3 1.68%
01-01-2023 2,576.5 0.60% 17,859.5 -1.36% Beta 1 0.35
08-01-2023 2,624.0 1.85% 17,956.6 0.54% Beta 2 0.35
15-01-2023 2,548.8 -2.87% 18,027.7 0.40% Beta 3 0.39
22-01-2023 2,612.2 2.49% 17,604.4 -2.35%
29-01-2023 2,648.8 1.40% 17,854.1 1.42%
05-02-2023 2,577.5 -2.69% 17,856.5 0.01%
12-02-2023 2,515.5 -2.41% 17,944.2 0.49%
19-02-2023 2,484.2 -1.24% 17,465.8 -2.67% SUMMARY OUTPUT
26-02-2023 2,471.0 -0.53% 17,594.4 0.74%
05-03-2023 2,465.5 -0.22% 17,412.9 -1.03% Regression Statistics
12-03-2023 2,447.4 -0.73% 17,100.1 -1.80% Multiple R 0.235361432
19-03-2023 2,480.8 1.36% 16,945.1 -0.91% R Square 0.055395004
26-03-2023 2,560.4 3.21% 17,359.8 2.45% Adjusted R Square 0.046042479
02-04-2023 2,565.3 0.19% 17,599.2 1.38% Standard Error 0.023856473
09-04-2023 2,536.2 -1.13% 17,828.0 1.30% Observations 103
16-04-2023 2,498.0 -1.51% 17,624.1 -1.14%
23-04-2023 2,457.3 -1.63% 18,065.0 2.50% ANOVA
30-04-2023 2,500.8 1.77% 18,069.0 0.02% df SS MS F Significance F
07-05-2023 2,623.4 4.90% 18,314.8 1.36% Regression 1 0.003370965 0.003370965 5.922999964 0.016701
14-05-2023 2,641.5 0.69% 18,203.4 -0.61% Residual 101 0.057482264 0.000569131
21-05-2023 2,652.4 0.41% 18,499.4 1.63% Total 102 0.060853229
28-05-2023 2,716.7 2.43% 18,534.1 0.19%
04-06-2023 2,636.2 -2.96% 18,563.4 0.16% Coefficients Standard Error t Stat P-value Lower 95% Upper 95%Lower 95.0% Upper 95.0%
11-06-2023 2,715.7 3.01% 18,826.0 1.41% Intercept -0.00073272 0.002418684 -0.302941406 0.762557587 -0.00553 0.004065 -0.00553 0.004065299
18-06-2023 2,641.6 -2.73% 18,665.5 -0.85% X Variable 1 0.393237186 0.161578553 2.433721423 0.016700827 0.072709 0.713766 0.072709 0.713765571
25-06-2023 2,678.2 1.38% 19,189.1 2.80%
02-07-2023 2,698.1 0.74% 19,331.8 0.74%
09-07-2023 2,676.9 -0.79% 19,564.5 1.20%
16-07-2023 2,604.0 -2.72% 19,745.0 0.92%
23-07-2023 2,584.6 -0.75% 19,646.1 -0.50%
30-07-2023 2,546.0 -1.49% 19,517.0 -0.66%
06-08-2023 2,501.8 -1.74% 19,428.3 -0.45%
13-08-2023 2,554.8 2.12% 19,310.2 -0.61%
20-08-2023 2,563.6 0.34% 19,265.8 -0.23%
27-08-2023 2,504.8 -2.29% 19,435.3 0.88%
03-09-2023 2,513.8 0.36% 19,820.0 1.98%
10-09-2023 2,469.7 -1.75% 20,192.4 1.88%
17-09-2023 2,482.5 0.52% 19,674.3 -2.57%
24-09-2023 2,465.6 -0.68% 19,638.3 -0.18%
01-10-2023 2,499.4 1.37% 19,653.5 0.08%
08-10-2023 2,569.5 2.80% 19,751.1 0.50%
15-10-2023 2,495.2 -2.89% 19,542.7 -1.06%
22-10-2023 2,482.1 -0.53% 19,047.3 -2.53%
29-10-2023 2,509.3 1.10% 19,230.6 0.96%
05-11-2023 2,486.6 -0.90% 19,425.4 1.01%
12-11-2023 2,528.8 1.70% 19,731.8 1.58%
19-11-2023 2,515.2 -0.54% 19,794.7 0.32%
26-11-2023 2,563.7 1.93% 20,267.9 2.39%
03-12-2023 2,522.3 -1.61% 20,969.4 3.46%
10-12-2023 2,522.9 0.02% 21,456.7 2.32%
17-12-2023 2,575.6 2.09% 21,349.4 -0.50%
24-12-2023 2,664.0 3.43% 21,731.4 1.79%
31-12-2023 2,620.1 -1.65% 21,710.8 -0.09%
07-01-2024 2,544.0 -2.90% 21,894.6 0.85%
14-01-2024 2,565.4 0.84% 21,622.4 -1.24%
21-01-2024 2,428.3 -5.34% 21,352.6 -1.25%
28-01-2024 2,452.6 1.00% 21,853.8 2.35%
04-02-2024 2,424.2 -1.16% 21,782.5 -0.33%
11-02-2024 2,375.3 -2.02% 22,040.7 1.19%
18-02-2024 2,394.1 0.79% 22,212.7 0.78%
25-02-2024 2,409.7 0.65% 22,338.8 0.57%
03-03-2024 2,419.6 0.41% 22,493.6 0.69%
10-03-2024 2,327.7 -3.80% 22,023.4 -2.09%
17-03-2024 2,256.6 -3.06% 22,096.8 0.33%
24-03-2024 2,264.4 0.35% 22,326.9 1.04%
31-03-2024 2,267.0 0.11% 22,513.7 0.84%
07-04-2024 2,232.3 -1.53% 22,519.4 0.03%
14-04-2024 2,231.6 -0.03% 22,147.0 -1.65%
21-04-2024 2,222.7 -0.40% 22,420.0 1.23%
28-04-2024 2,217.1 -0.25% 22,475.9 0.25%
05-05-2024 2,362.6 6.56% 22,055.2 -1.87%
12-05-2024 2,320.4 -1.79% 22,466.1 1.86%
19-05-2024 2,369.1 2.10% 22,957.1 2.19%
26-05-2024 2,329.1 -1.69% 22,530.7 -1.86%
02-06-2024 2,577.8 10.68% 23,290.2 3.37%
09-06-2024 2,479.8 -3.80% 23,465.6 0.75%
16-06-2024 2,441.3 -1.55% 23,501.1 0.15%
23-06-2024 2,473.1 1.30% 24,010.6 2.17%
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

Returns on Markets

Year Annual
2000 -14.65% Average Return 15.61%
2001 -16.18% Dividend Yield 1.16% 1
2002 3.25% Total Market Return 15.61%
2003 71.90%
2004 10.68%
2005 36.34%
2006 39.83% 100.00%
2007 54.77%
80.00%
2008 -51.79%
2009 75.76%
60.00%
2010 17.95%
2011 -24.62% 40.00%
2012 27.70%
2013 6.76% 20.00%
2014 31.39%
2015 -4.06% 0.00%
2004

2005

2010

2011

2017

2018
2000

2001

2002

2003

2006

2007

2008

2009

2012

2013

2014

2015

2016

2019

2020

2021

2022

2023
2016 3.01%
2017 28.65% -20.00%
2018 3.15%
2019 12.02% -40.00%

2020 14.90%
-60.00%
2021 24.12%
2022 4.32%
2023 19.42%
HINDUSTAN UNILEVER LTD
BSE: 500696 | NSE: HINDUNILVR

.
Date Adj Close Returns Sorted Returns Replication Simulated Returns Calcualation of Value at Risk - HINDUSTAN UNILEVER LTD (Simulation)
25-01-2024 2,475.16 0.1182703 10.44331014 1 -120.32%
27-07-2023 2,213.39 0.1223595 9.310613072 2 -51.19% Historical Approach
17-11-2022 1,972.08 -0.019487 8.152224567 3 -22.74% Mean 12.04%
13-12-2022 2,011.28 -0.056203 7.826406421 4 -55.69% Std Deviation 75.30%
22-05-2023 2,131.05 0.2936112 7.106194971 5 87.68% Min -89.90%
04-02-2021 1,647.36 -0.085919 6.808472199 6 61.70% Max 1044.33%
19-07-2022 1,802.21 -0.014177 6.739287694 7 105.55% CMP 2,783.0
20-01-2022 1,828.12 0.0645284 6.645239126 8 20.66%
30-07-2021 1,717.31 0.0218626 6.453731587 9 -59.45% Monte Carlo Simulation
01-12-2020 1,680.57 -0.029461 6.420364586 10 19.99% Mean 12.65%
24-02-2022 1,731.58 -0.100296 6.321232063 11 -34.52% Std Deviation 75.23%
08-09-2021 1,924.61 -0.142271 5.902022555 12 23.34% Min -283.56%
03-07-2023 2,243.85 -0.193789 5.881002026 13 33.48% Max 286.03%
11-10-2024 2,783.20 0.4516538 5.824529804 14 -54.43% CMP 2,625.9
06-01-2022 1,917.26 0.0267331 5.779682319 15 20.95%
06-09-2022 1,867.34 -0.26771 5.713121144 16 -101.63% Percentile Confidence VAR % Stock Price VAR (INR)
11-01-2024 2,550.00 0.5492 5.688237079 17 49.77% 5.0% 95.0% -110.72% 5,864.5 -3,081.5
29-01-2021 1,646.01 -0.025238 5.630990853 18 -92.53% 1.0% 99.0% -157.35% 7,162.1 -4,379.1
12-04-2021 1,688.63 -0.311761 5.459171621 19 111.66% 0.5% 99.5% -175.46% 7,666.1 -4,883.1
15-02-2024 2,453.55 0.2960353 5.430788856 20 -2.16% 10.0% 90.0% -83.59% 5,109.4 -2,326.4
14-01-2022 1,893.12 0.2408662 5.299720199 21 -38.42%
11-02-2020 1,525.64 -0.295214 5.145131287 22 8.34% Daily Returns Distribution
05-06-2023 2,164.69 0.1665209 5.118102876 23 -10.15%
06-12-2021 1,855.68 0.1020327 5.04456119 24 -18.42%
03-06-2022 1,683.87 0.1777274 5.031699001 25 -106.07%
13-03-2020 1,429.76 -0.281161 4.983776425 26 -22.07%
25-10-2022 1,988.99 -0.226327 4.901986757 27 94.54%
10-01-2024 2,570.84 0.2998149 4.854323465 28 22.09%
01-12-2022 1,977.85 0.0632968 4.836910075 29 12.37%
12-09-2022 1,860.11 -0.247521 4.809166094 30 126.47%
08-12-2023 2,471.98 -0.009209 4.746707475 31 44.48%
18-01-2024 2,494.96 0.0986272 4.684059424 32 -153.40%
07-07-2023 2,270.98 0.4942828 4.602922319 33 84.75%
06-10-2020 1,519.78 -0.180501 4.528110509 34 31.14%
27-10-2021 1,854.52 -0.06309 4.503604307 35 81.38%
14-11-2022 1,979.40 0.113625 4.491457526 36 24.12%
12-07-2022 1,777.44 -0.18458 4.459937094 37 -121.61%
31-08-2023 2,179.79 0.333308 4.321740241 38 -9.28%
07-05-2020 1,634.87 -0.115134 4.207024443 39 0.80%
07-10-2021 1,847.59 0.3437896 4.167058381 40 -22.50%
06-01-2020 1,374.91 -0.007972 4.079419843 41 97.46%
23-12-2019 1,385.96 -0.478182 4.076120537 42 63.48%
03-01-2024 2,656.02 0.6951272 4.037931734 43 42.36%
06-03-2020 1,566.86 -0.29864 4.013694237 44 150.92%
21-09-2023 2,234.03 0.1406478 3.993028483 45 -48.57%
21-09-2021 1,958.56 0.0073914 3.970171503 46 157.82%
06-04-2023 1,944.19 0.0109348 3.96994778 47 -72.57%
10-01-2022 1,923.16 0.0092881 3.953630308 48 -0.11%
27-09-2021 1,905.46 0.0505371 3.927562652 49 -57.59%
23-09-2022 1,813.80 0.0727516 3.917273107 50 -52.92%
01-06-2022 1,690.79 -0.065496 3.903770851 51 -23.81%
11-10-2022 1,809.29 -0.083608 3.884373102 52 155.48%
27-10-2022 1,974.36 -0.234846 3.856917957 53 64.63%
18-03-2024 2,580.35 0.334952 3.746527439 54 -38.99%
22-09-2021 1,932.92 0.3418124 3.728962331 55 -26.50%
03-04-2020 1,440.53 -0.43968 3.697067323 56 70.99%
28-02-2024 2,570.90 0.3344055 3.688629355 57 38.74%
10-04-2023 1,926.63 -0.003866 3.688576118 58 4.98%
30-12-2022 1,934.10 0.1438575 3.68518558 59 -56.74%
11-03-2022 1,690.86 -0.057546 3.674456514 60 -10.55%
27-01-2022 1,794.10 -0.063072 3.563335958 61 50.31%
25-08-2022 1,914.88 -0.232836 3.552764594 62 -9.47%
19-03-2024 2,496.05 0.3312924 3.51823129 63 187.15%
10-10-2022 1,874.91 -0.031573 3.513082599 64 25.45%
27-08-2021 1,936.03 0.8011711 3.510780942 65 159.82%
14-06-2019 1,074.88 -0.404615 3.484412822 66 -24.75%
02-02-2022 1,805.34 0.1091118 3.477681539 67 0.16%
29-10-2020 1,627.74 -0.358817 3.420844822 70 43.54%
 HINDUSTAN UNILEVER LTD
( HINDUNILVR | BSE Code 500696)

INR 2783
52 Week (High - INR 3,035 & Low - 2,170)

About the Company

Hindustan Unilever Limited (HUL) is the Indian subsidiary of Unilever, one of the world's leading consumer goods companies. Established in
1933, HUL is a major player in India's fast-moving consumer goods (FMCG) sector. Headquartered in Mumbai, Maharashtra, the company
offers a diverse range of products across categories like personal care, home care, food, and beverages. Some of their most popular brands
in India include Dove, Surf Excel, Lifebuoy, and Lipton. The company was incorporated on 17 October 1933 as Lever Brothers India Limited
and later became Hindustan Unilever Limited in 2007. As of 2020, Unilever holds a 61.90% stake in HUL. The company operates 28
manufacturing units across India, serving millions of consumers.

Financial Summary

Revenues (INR Crs.) Net Profit (INR Crs.) Average Total Assets (INR Crs.)
78,489.0
60,580.0 61,896.0 10,120.0 10,277.0
52,446.0 8,879.0
47,028.0 7,995.0 73,077.0
70,506.0
68,740.0

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Return on Equity (%) Return on Asset (%) Financial Leverage

4306.38% 4373.19% 334.0x

13.85%
3778.30%
3402.13% 13.09%
311.0x
12.59%
300.0x
11.63% 292.5x

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Recent Updates
• Hindustan Unilever (HUL), India’s largest consumer goods company, reported a 2.7% y-o-y increase in standalone net profit for Q1FY25, reaching
Rs.2,538 crore.
• Revenue, encompassing product sales and other operating income, rose 1.3% y-o-y to Rs.15,339 crore, meeting analysts’ expectations of Rs.15,325
crore.
• EBITDA increased by 2.4% y-o-y to Rs.3,606 crore, aligning with market estimates of Rs.3,614 crore
• The EBITDA margin improved by 30 basis points, reaching 23.5%.
• Volume growth for Q1FY25 stood at 4%, an improvement from the 3% growth seen in the same period last year and higher than the 2% growth
observed in the preceding three quarters (Q2FY24, Q3FY24, Q4FY24).revenue rose 1.4 per cent year-on-year (Y-o-Y) to Rs 15,707 crore.
• Home Care: The largest contributor to HUL’s topline, the Home Care division, saw a 4.6% year-on-year revenue increase to Rs.5,675 crore. Key
brands in this segment include Vim, Surf excel, Domex, and Pureit.
• Foods & Refreshments: This segment experienced a 1.4% growth, bringing in Rs.3,850 crore. Notable brands here are Knorr, Lipton, Horlicks, and
Kwality Walls.
• Beauty & Wellbeing: Revenue grew by 3.09% year-on-year, totaling Rs.3,199 crore. Prominent brands in this category include Dove, Lifebuoy,
Pepsodent, Tresemme, and Lakme.
• Personal Care: Revenue for this segment slipped by 4.48%, down to Rs.2,683 crore. Key brands include Dove, Lifebuoy, and Lakme.
Dupont Analysis- Return on Equity & Return on Asset
Return on Equity (ROE)
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 5,214.0 6,054.0 6,748.0 7,995.0 8,879.0 10,120.0 10,277.0
Average Shareholder Equity 216.0 216.0 216.0 235.0 235.0 235.0 235.0
Return on Equity 2413.89% 2802.78% 3124.07% 3402.13% 3778.30% 4306.38% 4373.19%

ROE - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 5,214.0 6,054.0 6,748.0 7,995.0 8,879.0 10,120.0 10,277.0
Revenue 35,545.0 39,310.0 39,783.0 47,028.0 52,446.0 60,580.0 61,896.0
Net Profit Margin (A) 14.67% 15.40% 16.96% 17.00% 16.93% 16.71% 16.60%

Revenue 35,545.0 39,310.0 39,783.0 47,028.0 52,446.0 60,580.0 61,896.0

Average Total Asset 17,862.0 18,629.0 20,153.0 68,740.0 70,506.0 73,077.0 78,489.0
Asset Turnover Ratio (B) 2.0x 2.1x 2.0x 0.7x 0.7x 0.8x 0.8x

Average Total Asset 17,862.0 18,629.0 20,153.0 68,740.0 70,506.0 73,077.0 78,489.0
Average Shareholder Equity 216.0 216.0 216.0 235.0 235.0 235.0 235.0
Equity Multiplier (C) 82.7x 86.2x 93.3x 292.5x 300.0x 311.0x 334.0x

Return on Equity (A*B*C) 2413.89% 2802.78% 3124.07% 3402.13% 3778.30% 4306.38% 4373.19%

Return on Asset (ROA)

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 5,214.0 6,054.0 6,748.0 7,995.0 8,879.0 10,120.0 10,277.0
Average Total Asset 17,862.0 18,629.0 20,153.0 68,740.0 70,506.0 73,077.0 78,489.0
Return on Asset 29.19% 32.50% 33.48% 11.63% 12.59% 13.85% 13.09%

ROA - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 5,214.0 6,054.0 6,748.0 7,995.0 8,879.0 10,120.0 10,277.0
Revenue 35,545.0 39,310.0 39,783.0 47,028.0 52,446.0 60,580.0 61,896.0
Net Profit Margin (A) 14.67% 15.40% 16.96% 17.00% 16.93% 16.71% 16.60%

Revenue 35,545.0 39,310.0 39,783.0 47,028.0 52,446.0 60,580.0 61,896.0

Average Total Asset 17,862.0 18,629.0 20,153.0 68,740.0 70,506.0 73,077.0 78,489.0
Asset Turnover Ratio (B) 2.0x 2.1x 2.0x 0.7x 0.7x 0.8x 0.8x

Return on Asset (A*B) 29.19% 32.50% 33.48% 11.63% 12.59% 13.85% 13.09%

Dupont Summary
• The net profit margin has fluctuated over the years, with a high of 17.00% in March 2021 and a more recent lower percentage of 16.60%
in March 2024.The trend shows relative stability in the margins, but there’s a noticeable dip between March 2021 and March 2022.
• The asset turnover ratio, which measures efficiency, declines significantly after March 2020. It remains strong at 2.0x and 2.1x in 2018 and
2019, but sharply decreases to 0.7x by March 2021, and hovers around 0.8x in the following years.This decline indicates a reduction in the
company's ability to generate revenue from its asset base.
• The equity multiplier, which reflects financial leverage, increases significantly over the years, from 82.7x in March 2018 to a striking
334.0x in March 2024.This indicates that the company has been using significantly more leverage over time, contributing to its ROE.
• ROE starts at an extremely high 2413.89% in March 2018 and increases to an even higher 4373.19% by March 2024.The equity multiplier
is the primary driver behind this steep increase, showing the significant effect of leverage on ROE growth.
• ROA was 29.19% in March 2018 and increased to 33.48% in March 2021 before declining to 13.09% in March 2024.The drop in ROA is
mainly due to the decline in the asset turnover ratio, despite a relatively stable profit margin over the years.The asset turnover ratio has
also increased slightly, which means the company is generating more sales from its assets. This could be due to factors such as leaner
inventory management or better capacity utilization.

Disclaimer: This report is made as part of educational assignment is meant for educational purpose only, author is not liable for any lossses. it is advisable to consult SEBI regrestered
Research Analyst before making Investments
 HINDUSTAN UNILEVER LTD
( HINDUNILVR | BSE Code 500696)

INR 2783
52 Week (High - INR 3,035 & Low - 2,170)

Altman's Z Score Analysis

Hindustan Unilever Limited (HUL) is the Indian subsidiary of Unilever, one of the world's leading consumer goods companies. Established in
1933, HUL is a major player in India's fast-moving consumer goods (FMCG) sector. Headquartered in Mumbai, Maharashtra, the company
offers a diverse range of products across categories like personal care, home care, food, and beverages. Some of their most popular brands in
India include Dove, Surf Excel, Lifebuoy, and Lipton. The company was incorporated on 17 October 1933 as Lever Brothers India Limited and
later became Hindustan Unilever Limited in 2007. As of 2020, Unilever holds a 61.90% stake in HUL. The company operates 28 manufacturing
units across India, serving millions of consumers.

Financial Summary

Working Capital/ Total Assets (%) Retained Earnings/ Total Assets (%) EBIT/ Total Assets (%)
17.80%
0.97% 17.13%
16.69%
0.73%

15.35%
-7.07%

-8.80% -8.53%
0.00% 0.00%
-10.51%
2021 2022 2023 2024 2021 2022 2023 2024
2021 2022 2023 2024

Market Cap/ Long Term Liabilities (%) Sales/ Total Assets (%)

49350.09 82.90%
46150.43 78.86%
% 74.39%
% 68.41%
35851.06
%

0.00%

2021 2022 2023 2024 2021 2022 2023 2024

Altman's Z Score Analysis Calculation

Working Capital/ Total Assets
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Working Capital -581.0 129.0 898.0 -7,223.0 -6,203.0 -5,169.0 -6,692.0
Total Assets 17,862.0 18,629.0 20,153.0 68,740.0 70,506.0 73,077.0 78,489.0
Working Capital/ Total Assets (A) -3.25% 0.69% 4.46% -10.51% -8.80% -7.07% -8.53%

Retained Earnings/ Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Retained Earnings 554.0 986.0 932.0 0.0 683.0 530.0 0.0
Total Assets 17,862.0 18,629.0 20,153.0 68,740.0 70,506.0 73,077.0 78,489.0
Retained Earnings/ Total Assets (B) 3.10% 5.29% 4.62% 0.00% 0.97% 0.73% 0.00%

EBIT/ Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
EBIT 6,979.0 8,315.0 8,859.0 10,552.0 11,766.0 13,010.0 13,443.0
Total Assets 17,862.0 18,629.0 20,153.0 68,740.0 70,506.0 73,077.0 78,489.0
EBIT/ Total Assets (C) 39.07% 44.63% 43.96% 15.35% 16.69% 17.80% 17.13%

Market Cap/ Long Term Liabilities

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Market Cap 288,607.4 369,471.7 497,557.3 571,297.4 481,349.0 601,577.6 532,029.7
Long Term Liabilities 0.0 99.0 0.0 0.0 1,043.0 1,219.0 1,484.0
Market Cap/ Long Term Liabilities (D) 0.00% 373203.79% 0.00% 0.00% 46150.43% 49350.09% 35851.06%

Sales/ Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Total Sales 35,545.0 39,310.0 39,783.0 47,028.0 52,446.0 60,580.0 61,896.0
Total Assets 17,862.0 18,629.0 20,153.0 68,740.0 70,506.0 73,077.0 78,489.0
Return on Asset (E) 199.00% 211.02% 197.40% 68.41% 74.39% 82.90% 78.86%

Altamn's Z Score
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Final Score 3.3 2,242.9 3.5 1.1 278.1 297.4 216.4
Financial Stability Strong Strong Strong Distressed Strong Strong Strong

Disclaimer: This report is made as part of educational assignment is meant for educational purpose only, author is not liable for any loss ses. it is advisable to consult SEBI regrestered Research
Analyst before making Investments