Hindustan Unilever Ltd.
ISIN: INE030A01027 • Market Cap: ₹4.74 Lakh Cr
The 5-Pillar Quality Audit for Hindustan Unilever Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (23.1%), Return on Capital Employed (22.6%), and equity compounding (30.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (2.4%) and 3Y PAT CAGR (13.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 31.67 vs PEG of 4.22 and Dividend Yield of 2.0%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 61.9%, backed by 26.5% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 22.6%)
Hindustan Unilever Ltd. generates exceptional return on capital employed of 22.6%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 30.9%)
Shareholder equity compounds at a healthy 30.9%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Deep Institutional Sponsorship (26.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 26.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 2.4%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Fast Moving Consumer Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Fast Moving Consumer Goods space.
Quantitative Strategy Eligibility
Checking HINDUNILVR against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 75/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Fast Moving Consumer Goods Sector Peer Comparison
Compare HINDUNILVR directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Hindustan Unilever Ltd. (HINDUNILVR)Current | 75/100 | ₹4.74 Lakh Cr | 31.67 | 22.6% | 0.00 | — |
| ITC Ltd. (ITC) | 81/100 | ₹3.34 Lakh Cr | 16.86 | 36.4% | 0.03 | View |
| Nestle India Ltd. (NESTLEIND) | 68/100 | ₹2.83 Lakh Cr | 74.37 | 57.2% | 0.00 | View |
| Varun Beverages Ltd. (VBL) | 75/100 | ₹1.46 Lakh Cr | 43.23 | 19.6% | 0.10 | View |
| Britannia Industries Ltd. (BRITANNIA) | 74/100 | ₹1.30 Lakh Cr | 50.04 | 62.3% | 0.27 | View |
| United Spirits Ltd. (UNITDSPR) | 77/100 | ₹1.11 Lakh Cr | 58.68 | 26.4% | 0.00 | View |
Frequently Asked Questions: Hindustan Unilever Ltd.
Q:What is the 5-Pillar Fundamental Score for Hindustan Unilever Ltd. (HINDUNILVR)?
Hindustan Unilever Ltd. has a RupeeTools Fundamental Score of 75/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (91/100), Financial Health (87/100), Growth (55/100), Valuation (55/100), and Ownership Quality (78/100).
Q:Is HINDUNILVR fundamentally strong for long-term investment?
Yes, HINDUNILVR exhibits solid fundamental strength with a 75/100 score, driven by a return on equity of 30.9% and a debt-to-equity ratio of 0.00.
Q:Does HINDUNILVR pass the Coffee Can Investing filter?
No. HINDUNILVR does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does HINDUNILVR compare against other Fast Moving Consumer Goods peers?
Within India's Fast Moving Consumer Goods sector, HINDUNILVR trades at a P/E of 31.67 and generates an ROCE of 22.6%. Compare its 5-Pillar score of 75/100 against top sector peers like ITC Ltd. (81/100), Nestle India Ltd. (68/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.