Hindustan Unilever Limited

HINDUNILVR.BO•household-personal-products

Current Price

2,642.65INR

per share

Fair Value

801.27INR

Overvalued

229.8%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.47%, higher than industry average of 6.57%.

Growth Trajectory

Profitability

In the growth phase company makes 21.77% profit on every dollar of sales, higher than industry average of 16.02%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.18% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

1.78T INR

Equity Value

1.88T INR

FCF Yield

20.69%

Average ROIC

27.33%

Cost of Capital

7.79%

P/E Ratio

56.52x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	630.88B INR	609.66B INR
Operating Income or EBIT	148.44B INR	142.66B INR
Interest Expense	4.29B INR	3.34B INR
Book Value Of Equity	494.02B INR	512.18B INR
Book Value Of Debt	16.48B INR	14.84B INR
Cash and Marketable Securities	119.95B INR	128.77B INR
Number of Shares Outstanding	2.35B	--
Minority interests	2.05B INR	0 INR
Current Stock Price	2642.65 INR	--
Effective Tax Rate	26.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

-3.09%

3.48%Company

6.57%Industry

Below Industry

Operating Margin

+7.51%

23.52%Company

16.02%Industry

Above Industry

Hindustan Unilever Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.88%

Reinvestment Rate

52.36%

Terminal value represents 55% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	978.32B INR	Add
Present Value (Cash Flow Over Next 10 Years)	802.90B INR	Add
Value of Operating Assets	1.78T INR	Sub-total
Debt	16.48B INR	Subtract
Minority Interests	2.04B INR	Subtract
Cash	119.95B INR	Add
Value of Equity	1.88T INR	Sub-total
Number of Shares	2.35B shares	Divisor
Estimated Value per Share (Fair Value)	801.26 INR	Total
Current Market Price	2.64K INR	Reference

Financial Projections

Total FCF Present Value

802.90B INR

Avg Revenue Growth

5.97%

Avg Operating Margin

21.38%

Avg ROIC

27.33%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	683.30B INR	734.38B INR	789.27B INR	848.27B INR	911.68B INR	974.67B INR	1.03T INR	1.09T INR	1.15T INR	1.20T INR	1.26T INR
Growth Rate	8.31%	7.47%	7.47%	7.47%	7.47%	6.90%	6.34%	5.77%	5.21%	4.65%	4.65%
PROFITABILITY
Operating Income	160.77B INR	164.19B INR	171.84B INR	179.71B INR	187.81B INR	200.79B INR	213.53B INR	225.87B INR	237.65B INR	248.70B INR	260.26B INR
Operating Margin	23.52%	22.35%	21.77%	21.18%	20.60%	20.60%	20.60%	20.60%	20.60%	20.60%	20.60%
EBIT (1-tax)	118.97B INR	121.50B INR	127.16B INR	132.99B INR	138.98B INR	146.97B INR	154.59B INR	161.72B INR	168.25B INR	174.09B INR	182.18B INR
CASH FLOW
Reinvestment	20.49B INR	22.02B INR	23.67B INR	25.43B INR	25.27B INR	27.88B INR	27.01B INR	25.78B INR	24.19B INR	25.31B INR	95.40B INR
Free Cash Flow	98.48B INR	99.47B INR	103.49B INR	107.55B INR	113.70B INR	119.08B INR	127.57B INR	135.93B INR	144.06B INR	148.77B INR	86.78B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	2.05T INR
Present Value	91.88B INR	86.59B INR	84.06B INR	81.50B INR	80.40B INR	78.31B INR	77.78B INR	76.60B INR	74.79B INR	70.94B INR	—
EFFICIENCY
ROIC	30.46%	29.55%	29.36%	29.11%	28.82%	28.96%	28.87%	28.75%	28.60%	28.43%	8.88%
Cost of Capital	7.17%	7.17%	7.17%	7.17%	7.17%	7.51%	7.85%	8.19%	8.53%	8.88%	8.88%
Sales/Capital	2.49x	2.49x	2.49x	2.49x	2.49x	2.21x	2.21x	2.21x	2.21x	2.21x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)