fmcg
Hindustan Unilever
HINDUNILVR · Nifty 50
₹2,197.6
Price 2026-06-17
At a Glance
Fundamental
75/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Hindustan Unilever scores 75/100 on fundamentals (strong). Hindustan Unilever: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 75/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 30.4% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 30.41% is strong margin-driven and stable. Net margin of 23.2% × asset turnover of 0.8x × leverage of 1.6x.
What This Means
Net margin of 23.2% means the company keeps ₹23.2 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.80x means the company efficiently uses its assets to generate revenue. Leverage of 1.6x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
50.2%
Operating
21.8%
Net
23.2%
Gross margin 50.2% → operating margin 21.8% → net margin 23.2%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.7x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 37.8x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.1x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin at 15.1% — strong cash generation. Business is self-funding.
Peer Comparison
Key Watchpoints
Breaks above ₹2307 (+5%)
Trend reversal confirmation
Breaks below ₹2088 (-5%)
Further downside risk
PE reverts to 5Y median of 47.4
Valuation normalization
Fmcg sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Market paying premium for growth. If growth slows, multiple compression risk is high.
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 2 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes