Hindustan Unilever Limited (HINDUNILVR) AI Stock Analysis

• Market Cap: ₹5.58T
• Dividend Yield: 1.84%
• Average Volume (3M): 131.28K
• Price to Earnings (P/E): 51.2
• Beta (1Y): 0.60
• Revenue Growth: 2.94%
• EPS Growth: 6.05%
• Country: IN
• Employees: 19,427
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 11.27
• Shares Outstanding: 2,349,591,300
• 10 Day Avg. Volume: 118,280
• 30 Day Avg. Volume: 131,277
• PEG Ratio: 13.65
• Price to Book (P/B): 10.62
• Price to Sales (P/S): 8.35
• P/FCF Ratio: 49.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,750.00
• Price Target Upside: 14.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹2,731.00 ▲(13.96% Upside)

Hindustan Unilever Limited's overall stock score is driven primarily by its strong financial performance, characterized by robust profitability and solid asset management. However, mixed technical indicators and a high P/E ratio suggest caution. The stock's valuation appears stretched, which could limit upside potential despite a stable financial foundation.

Positive Factors

Revenue Growth

Consistent revenue growth reflects effective market strategies and strong product demand, ensuring long-term business sustainability and market leadership.

Balance Sheet Strength

A strong balance sheet with low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities and withstand economic downturns.

Cash Flow Management

Efficient cash flow management supports reinvestment and shareholder returns, ensuring the company can fund operations and growth initiatives sustainably.

Negative Factors

EBIT Margin Decline

A declining EBIT margin may signal rising costs or competitive pressures, potentially impacting profitability if not addressed through cost management or pricing strategies.

Free Cash Flow Variability

Variability in free cash flow can affect the company's ability to consistently fund investments and return capital to shareholders, possibly indicating fluctuating operational efficiency.

High Valuation Concerns

A high valuation could limit future stock price appreciation, potentially impacting investor returns if growth expectations are not met.

Hindustan Unilever Limited Business Overview & Revenue Model

Company Description

Hindustan Unilever Limited, a consumer goods company that 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, purifiers business, etc. The Beauty & Personal Care segment provides oral, skin, and hair care products, as well as soaps, deodorants, talcum powder, color cosmetics, salon services, etc. The Foods & Refreshment segment provides culinary products, such as tomato based products, fruit based products, soups, etc., as well as tea, coffee, health food drinks, ice-creams, and frozen desserts. The Others segment engages in export and consignment sales activities. The company also engages in the beauty salons, job work, discharge trust, and real estate businesses. The company was founded in 1888 and is headquartered in Mumbai, India. Hindustan Unilever Limited operates as a subsidiary of Unilever Plc.

How the Company Makes Money

Hindustan Unilever generates revenue primarily through the sale of its wide range of consumer goods across multiple categories. The company has a diversified revenue model that includes retail sales of personal care, home care, food, and beverage products. Key revenue streams consist of sales from established brands as well as contributions from newer product lines developed through innovation. Additionally, partnerships with various distributors and retailers enhance market reach and facilitate product availability. The company's robust supply chain and marketing strategies, along with a focus on e-commerce and digital marketing, further contribute to its earnings. HINDUNILVR also benefits from economies of scale and strong brand loyalty, allowing it to maintain a competitive edge in the FMCG sector.

Hindustan Unilever Limited Financial Statement Overview

Summary

Hindustan Unilever Limited exhibits a strong financial profile with consistent revenue growth, robust profitability, and solid asset management. The company's low leverage and high equity buffer provide a stable financial foundation, while cash flows support ongoing investments and returns. Despite minor fluctuations in margins and cash flow growth, the financial health is sound, aligning well with industry standards.

Income Statement

Hindustan Unilever Limited has demonstrated a steady growth trajectory in revenue and profitability. The company achieved a healthy gross profit margin and consistent net profit margin, which indicates strong cost management and operational efficiency. Revenue growth has been robust over the years, reflecting effective market strategies and product demand. However, the slight decline in EBIT margin in the latest period could indicate increasing operational expenses or competitive pressures.

Balance Sheet

The balance sheet of Hindustan Unilever Limited is solid, with a strong equity base and a low debt-to-equity ratio, underscoring financial stability and low leverage risk. The company's equity ratio is favorable, suggesting prudent asset management and strong investor confidence. Return on equity is impressive, highlighting efficient use of shareholder funds to generate profits. Overall, the balance sheet reflects financial robustness with minimal risk exposure.

Cash Flow

Hindustan Unilever Limited's cash flow position is healthy, with strong operating cash flows consistently exceeding net income, indicating good cash generation efficiency. The free cash flow has shown variability, primarily due to capital expenditures, but remains positive, supporting reinvestment and shareholder returns. The slight decline in free cash flow growth rate might suggest higher capital investments or operational costs, but overall, cash flow management remains effective.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	639.28B	628.81B	617.25B	604.01B	523.06B	469.20B
Gross Profit	281.20B	274.44B	270.85B	241.06B	223.58B	207.08B
EBITDA	160.12B	159.08B	152.56B	145.71B	130.47B	117.68B
Net Income	107.95B	106.49B	102.77B	101.20B	88.79B	79.95B
Balance Sheet
Total Assets	0.00	798.80B	784.99B	730.87B	705.17B	687.57B
Cash, Cash Equivalents and Short-Term Investments	110.53B	127.93B	135.42B	88.75B	78.04B	78.42B
Total Debt	0.00	16.48B	14.84B	12.19B	10.43B	10.09B
Total Liabilities	-496.09B	302.71B	270.76B	225.65B	214.30B	210.63B
Stockholders Equity	496.09B	494.02B	512.18B	503.04B	490.61B	476.74B
Cash Flow
Free Cash Flow	0.00	106.11B	139.92B	87.99B	78.20B	50.00B
Operating Cash Flow	0.00	118.86B	154.69B	99.91B	90.48B	91.63B
Investing Cash Flow	0.00	64.73B	-53.24B	-14.94B	-17.28B	-15.28B
Financing Cash Flow	0.00	-131.01B	-100.34B	-89.53B	-80.15B	-93.09B

Hindustan Unilever Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2396.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:HINDUNILVR, the sentiment is Positive. The current price of 2396.4 is above the 20-day moving average (MA) of 2317.43, above the 50-day MA of 2356.74, and above the 200-day MA of 2370.84, indicating a bullish trend. The MACD of 9.34 indicates Negative momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 71.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:HINDUNILVR.

Hindustan Unilever Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLPAL	70 Outperform	₹559.39B	42.19	―	2.42%	-2.06%	-9.74%
MARICO	69 Neutral	₹978.37B	58.60	―	1.42%	22.56%	4.73%
HINDUNILVR	67 Neutral	₹5.58T	51.22	―	1.84%	2.94%	6.05%
DABUR	66 Neutral	₹926.22B	51.18	―	1.62%	2.68%	1.07%
PGHH	63 Neutral	₹406.60B	49.19	―	2.08%	8.28%	11.65%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GODREJCP	59 Neutral	₹1.26T	68.99	―	1.67%	5.77%	―

Hindustan Unilever Limited Corporate Events

Hindustan Unilever Subsidiary Kwality Wall’s (India) Appoints New Internal Auditor Amid Scheme of Arrangement

Hindustan Unilever Limited has disclosed a material update related to its ongoing Scheme of Arrangement with Kwality Wall’s (India) Limited, in line with stock exchange requirements for continuous disclosure about the subsidiary. Kwality Wall’s (India) Limited has informed HUL that its board has approved the appointment of Rohit Jhunjhunwala as the company’s internal auditor with effect from 30 December 2025 for the 2025–26 financial year, a governance move that supports internal controls and regulatory compliance within the entity that is party to the Scheme of Arrangement, and is therefore relevant for shareholders and market regulators monitoring the transaction’s progress.

Hindustan Unilever Announces Demerger of Ice Cream Business to Kwality Wall’s

Hindustan Unilever Limited has announced a Scheme of Arrangement with Kwality Wall’s (India) Limited, which involves the demerger and transfer of HUL’s ice cream business to KWIL. This move, sanctioned by the National Company Law Tribunal, allows KWIL to issue equity shares to HUL shareholders, reflecting a strategic realignment of HUL’s business focus. The scheme, effective from December 1, 2025, outlines the apportionment of acquisition costs for shareholders, impacting their investment in HUL and KWIL.

Hindustan Unilever Restructures with Kwality Wall’s Share Allotment

Hindustan Unilever Limited has announced the allotment of equity shares by Kwality Wall’s (India) Limited (KWIL) as part of a Scheme of Arrangement between HUL and KWIL. As per the scheme, KWIL has issued over 234 crore fully paid-up equity shares to HUL shareholders, marking a significant restructuring move. Additionally, KWIL’s pre-Scheme paid-up share capital, previously held entirely by HUL, has been canceled, resulting in KWIL no longer being a wholly-owned subsidiary of HUL. This strategic move is expected to impact HUL’s operational structure and market positioning, with KWIL seeking listing and trading permissions for the newly allotted shares.

Hindustan Unilever Seeks Shareholder Approval for Director Appointments

Hindustan Unilever Limited has announced a postal ballot to seek shareholder approval for the appointment of Mr. Niranjan Gupta as a Whole-time Director and Mr. Bobby Parikh as an Independent Director. This move is part of the company’s strategic efforts to strengthen its leadership team and enhance governance. The postal ballot process will be conducted electronically, with voting open from December 8, 2025, to January 6, 2026, reflecting the company’s commitment to transparent and efficient shareholder engagement.

Hindustan Unilever Announces Director Appointments via Postal Ballot

Hindustan Unilever Limited has announced a postal ballot to seek shareholder approval for the appointment of Mr. Niranjan Gupta as Whole-time Director and Mr. Bobby Parikh as Independent Director. The e-voting for these appointments will be conducted from December 8, 2025, to January 6, 2026. These appointments are expected to strengthen the company’s leadership and governance, potentially impacting its strategic direction and stakeholder confidence.

Hindustan Unilever Announces Key Updates in Scheme of Arrangement with Kwality Wall’s

Hindustan Unilever Limited has announced a material update regarding its Scheme of Arrangement with Kwality Wall’s (India) Limited. The update includes the relocation of KWIL’s registered office within Mumbai and the resignation of three non-executive directors. These changes are part of ongoing adjustments under the Scheme, which aims to streamline operations and enhance corporate governance, potentially impacting stakeholders by improving organizational efficiency.

Hindustan Unilever Announces Share Allotment for Kwality Wall’s Demerger

Hindustan Unilever Limited has announced the allotment of shares for Kwality Wall’s (India) Limited (KWIL) as part of an approved Scheme of Arrangement. This demerger involves transferring HUL’s ice cream business to KWIL, creating a leading listed ice cream company in India. The move is expected to provide focused management and strategic flexibility, enabling the business to fully realize its potential in the market. The scheme’s effective date is set for December 1, 2025, with the allotment of shares to be completed by December 29, 2025.

Hindustan Unilever Updates on Scheme of Arrangement with Kwality Wall’s

Hindustan Unilever Limited has announced a material update regarding its Scheme of Arrangement with Kwality Wall’s (India) Limited, as required by the observation letters from the National Stock Exchange of India and BSE Limited. This update involves continuous disclosure of material information about Kwality Wall’s to the stock exchanges, ensuring compliance with SEBI regulations. The communication underscores HUL’s commitment to transparency and regulatory adherence, potentially impacting its operational alignment and stakeholder trust.

Hindustan Unilever Announces Leadership Changes at Kwality Wall’s

Hindustan Unilever Limited has announced a series of leadership changes within Kwality Wall’s (India) Limited as part of a Scheme of Arrangement under the Companies Act, 2013. The board has approved several key appointments, including Mr. Prashant Premrajka as Chief Financial Officer and Mr. Chitrank Goel as Deputy Managing Director, among others. These changes are subject to shareholder approval and are expected to influence the company’s strategic direction and governance structure, potentially impacting its market positioning and stakeholder relations.

Hindustan Unilever Releases Earnings Call Recording for Q2 2025

Hindustan Unilever Limited announced the availability of the audio and video recording of its earnings conference call for the quarter and half-year ended September 30, 2025, on its website. This move ensures transparency and accessibility for stakeholders, allowing investors and analysts to review the company’s financial performance and strategic direction.