Hindustan Unilever Ltd’s fundamental analysis highlights essential financial metrics, including a total market capitalization of ₹5,50,122 crore, a debt-to-equity ratio of 0.03, and a return on equity (ROE) of 20.2%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
Table of Contents
Overview of FMCG Sector
The FMCG (Fast-Moving Consumer Goods) sector includes products with quick consumption rates, such as food, beverages, personal care, and household goods. It is characterized by high competition, low margins, and frequent product turnover, requiring constant innovation.
Driven by changing consumer preferences, digital transformation, and sustainability, the FMCG sector is evolving rapidly. Brands focus on efficiency, supply chain optimization, and expanding their reach through e-commerce and retail partnerships to stay competitive in a dynamic market.
Financial Analysis of HUL
| FY 24 | FY 23 | FY 22 | FY 21 | |
| Sales | 61,896 | 60,580 | 52,446 | 47,028 |
| Expenses | 47,233 | 46,431 | 39,589 | 35,402 |
| Operating Profit | 14,663 | 14,149 | 12,857 | 11,626 |
| OPM % | 23.38 | 23.16 | 24.39 | 24.51 |
| Other Income | 817 | 448 | 214 | 171 |
| EBITDA | 15,474 | 14,661 | 13,115 | 12,036 |
| Interest | 334 | 114 | 106 | 117 |
| Depreciation | 1,216 | 1,137 | 1,091 | 1,074 |
| Profit Before Tax | 13,930 | 13,346 | 11,874 | 10,606 |
| Tax % | 26.16 | 23.98 | 25.16 | 24.57 |
| Net Profit | 10,282 | 10,143 | 8,892 | 7,999 |
| EPS | 43.74 | 43.07 | 37.79 | 34.03 |
| Dividend Payout % | 96.02 | 90.55 | 89.97 | 91.1 |
* Consolidated Figures in Rs. Crores
HUL Company Metrics
Hindustan Unilever Ltd (HUL) financial metrics reflect steady growth: In FY24, sales reached ₹61,896 crore, up from ₹60,580 crore in FY23 and ₹52,446 crore in FY22. Operating profit improved to ₹14,663 crore, showcasing strong operational efficiency and profitability.
Sales Growth: Sales grew to ₹61,896 crore in FY24, a modest 2.17% increase from ₹60,580 crore in FY23. FY23 witnessed a robust 15.49% rise from ₹52,446 crore in FY22, indicating consistent demand growth over the years.
Expense Trends: Expenses increased to ₹47,233 crore in FY24, a 1.73% rise from ₹46,431 crore in FY23. In FY23, expenses rose significantly by 17.27% from ₹39,589 crore in FY22, highlighting a controlled rise in operational costs.
Operating Profit & Margins: Operating profit rose to ₹14,663 crore in FY24, a 3.63% increase over ₹14,149 crore in FY23. OPM slightly improved to 23.38% from 23.16% in FY23 but remained below FY22’s 24.39%, indicating margin stabilization.
Profitability Indicators: Net profit grew to ₹10,282 crore in FY24, a 1.37% rise over ₹10,143 crore in FY23. FY22 net profit stood at ₹8,892 crore. Earnings per share (EPS) increased to ₹43.74 in FY24 from ₹43.07 in FY23, indicating stable growth.
Taxation & Dividend: Tax rate rose to 26.16% in FY24 from 23.98% in FY23. Dividend payout increased to 96.02% in FY24 from 90.55% in FY23. FY22 tax was 25.16%, and dividend payout was 89.97%, reflecting consistent returns to shareholders.
Key Financial Metrics: EBITDA increased to ₹15,474 crore in FY24 from ₹14,661 crore in FY23 and ₹13,115 crore in FY22. Interest expenses rose sharply to ₹334 crore in FY24, while depreciation increased to ₹1,216 crore, reflecting enhanced financial investments.
HUL Stock Performance
Hindustan Unilever (HUL) has delivered modest stock performance, with a 1-year return of -11.1%, a 3-year return of 0.46%, and a 5-year return of 3.73%, reflecting challenges in maintaining consistent long-term growth.
| Duration | Return |
| 1 year | 11.1 % |
| 3 years | 0.46 % |
| 5 years | 3.73 % |
Hindustan Unilever Limited Shareholding Pattern
The shareholding pattern of Hindustan Unilever Limited shows consistent promoter holding at 61.90% over recent years. While FIIs’ stake declined from 13.66% (Mar 2022) to 12.17% (Sep 2024), DIIs increased from 11.61% to 14.13%, indicating institutional investor interest.
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
| Promoters | 61.90% | 61.90% | 61.90% | 61.90% |
| FIIs | 13.66% | 14.36% | 12.67% | 12.17% |
| DIIs | 11.61% | 11.51% | 13.21% | 14.13% |
| Government | 0.00% | 0.04% | 0.04% | 0.05% |
| Public | 12.83% | 12.17% | 12.19% | 11.75% |
| No. of Shareholders | 13,61,506 | 11,27,982 | 12,05,416 | 11,05,254 |
HUL Partnerships and Acquisitions
HUL has consistently expanded its market presence through strategic partnerships and acquisitions. Notable collaborations include partnerships with various global brands, strengthening its product portfolio, especially in categories like personal care, home care, and food products, enhancing customer reach.
The company’s acquisition strategy has also been impactful, acquiring brands like Horlicks from GlaxoSmithKline in 2020, significantly boosting its health and wellness segment. Such acquisitions help HUL diversify and penetrate new market segments, especially in health-focused products, strengthening its leadership in multiple categories.
Through partnerships, HUL has also focused on sustainability, collaborating with organizations to drive initiatives on reducing plastic waste, improving water conservation, and promoting sustainable sourcing practices. These collaborations align with HUL’s commitment to sustainable development goals and enhancing its brand reputation.
HUL Peer comparison
Hindustan Unilever (HUL), with the highest market cap of ₹5,50,121.64 crore, is compared to peers like Colgate-Palmolive, P&G Hygiene, and Gillette India. The analysis evaluates financial metrics and stock performance, highlighting differences in profitability, returns, and growth.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| Hind. Unilever | 2341.25 | 550121.64 | 53.52 | 20.24 | 27.24 | -5.33 | -11.11 | 1.79 |
| Colgate-Palmoliv | 2726.45 | 74167.79 | 50.49 | 74.52 | 96.8 | -4.1 | 7.81 | 1.76 |
| P & G Hygiene | 14567.7 | 47393.19 | 70.08 | 78.92 | 112.44 | -12.31 | -14.95 | 1.34 |
| Gillette India | 9392.2 | 30580.61 | 67.65 | 42.49 | 58.91 | 29.64 | 43.39 | 0.48 |
Future of Hindustan Unilever Limited
The future of Hindustan Unilever Limited (HUL) looks promising, with the company focusing on expanding its product portfolio across emerging sectors like health and wellness, sustainability, and digital transformation. This diversification helps HUL strengthen its competitive edge in evolving markets.
Additionally, HUL’s commitment to sustainability and innovation positions it well for long-term growth. Its initiatives on reducing plastic waste, enhancing water efficiency, and expanding in rural markets will further bolster its market leadership, enabling the company to adapt to changing consumer preferences and global challenges.
How To Invest In HUL Share?
To invest in Hindustan Unilever Limited shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Analyze Hindustan Unilever Limited’s financials, market trends, and growth prospects to understand its potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted broker like Alice Blue for its user-friendly platform and competitive fees, then register to access the stock market.
- Fund Your Trading Account: Deposit funds into your trading account, ensuring enough balance to cover share purchases and additional fees.
- Place a Buy Order: Search for Hindustan Unilever Limited on your broker’s platform and place a buy order with a specified quantity and price (market or limit order).
- Monitor Your Investment: Track your investment’s performance regularly and stay updated on news or developments that could impact your decision to hold or sell.
- Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.
Hindustan Unilever Limited – FAQs
The market cap of Hindustan Unilever Limited (HUL) is ₹5,50,122 crore as of December 2024. This significant market capitalization highlights the company’s strong presence in the Indian market and its sustained growth across various product categories.
Yes, Hindustan Unilever Limited (HUL) is a leader in the FMCG industry in India, with a strong market presence across multiple sectors such as personal care, home care, food, and beverages, maintaining consistent growth and innovation.
HUL has made several strategic acquisitions, including the purchase of Horlicks from GlaxoSmithKline in 2020, and brands like Brooke Bond, Rin, and Pureit, enhancing its portfolio in health, wellness, food, and home care segments.
Hindustan Unilever Limited (HUL) manufactures and markets a wide range of consumer goods, including personal care products, home care items, foods, beverages, and health products. Its brands include Dove, Lipton, Surf Excel, and many others.
Hindustan Unilever Limited (HUL) is a subsidiary of Unilever, a British-Dutch multinational corporation. The majority of HUL’s shares are publicly traded on the Indian stock market, but Unilever retains a significant controlling stake in the company.
The main shareholders of Hindustan Unilever Limited (HUL) are the promoters, holding 61.90%, followed by Foreign Institutional Investors (FIIs) with 12.17-14.36%, Domestic Institutional Investors (DIIs) with 11.51-14.13%, and the public holding around 11.75-12.19%.
Hindustan Unilever Limited (HUL) operates in the Fast-Moving Consumer Goods (FMCG) industry. It manufactures and markets various consumer products, including personal care, home care, food and beverages, and health and wellness items.
Hindustan Unilever (HUL) demonstrates steady growth in its order book through strong demand for its FMCG products, particularly in home care, personal care, and food categories. New product innovations, brand expansions, and an increased focus on e-commerce contribute to sustained growth.
To invest in Hindustan Unilever shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock, and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
Hindustan Unilever’s valuation, with a price-to-earnings (P/E) ratio of 53.5, suggests it is priced at a premium. This high P/E ratio, when compared with industry averages and growth prospects, indicates that the stock is likely overvalued, reflecting investor expectations of future growth.
The future of Hindustan Unilever Limited (HUL) looks promising, driven by its focus on sustainability, innovation, and expanding into health, wellness, and digital transformation. Its strong market position, product diversification, and commitment to rural expansion will support continued growth.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
