HINDUNILVR vs ITC
Side-by-side comparison of Hindustan Unilever Ltd. and ITC Ltd.. Descriptive only — not investment advice.
Hindustan Unilever Ltd.
FMCG
Quality Score: 66/100
ITC Ltd.
FMCG
Quality Score: 61/100
At a glance
| Metric | HINDUNILVR | ITC |
|---|---|---|
| Quality Score | 66/100 | 61/100 |
| P/E (trailing) | 50.5 | 18.9 |
| Forward P/E | 42.7 | 18.4 |
| ROE | +21.6% | — |
| Profit margin | +23.3% | +43.9% |
| Debt-to-equity | 3.02 | 0.51 |
| Dividend yield | +1.92% | +4.67% |
| 1Y price return | -2.2% | -26.6% |
| From 52w high | -16.2% | -28.0% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.05 | 2.61 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Hindustan Unilever (HINDUNILVR) trades at ₹2,287.70, 4.3% below its 200-DMA of ₹2,390.37, with a 52-week drawdown of -16.16% and a flat 1-year return of -2.18%. Q4 FY26 results showed 6% volume growth and 8% YoY revenue growth, beating estimates, while trailing PE stands at 50.5 and forward PE at 42.7 on a D/E of 3.02. ROE of 21.6% and a 5-year earnings CAGR of 21.4% reflect strong profitability, though 5-year revenue CAGR of 4.3% signals modest top-line growth.
ITC trades at ₹307.45, down 26.6% over the past 12 months and 28% below its 52-week high, sitting 15.2% under its 200-DMA. At a PE of 18.89 the stock is the cheapest in its FMCG peer group by a wide margin (peers range 50–81x), while carrying a 43.89% profit margin and a 4.67% dividend yield. Five-year earnings growth is flat at 0% despite 6.7% revenue CAGR, and quality score of 44 ranks 5th of 6 peers.
Pros
- ✓5-year earnings CAGR of 21.4% significantly outpaces 5-year revenue CAGR of 4.3%, indicating sustained margin expansion over the period.
- ✓ROE of 21.6% was above 15% in 4 of the available measurement years, and FCF was positive in 4 of those years, reflecting consistent capital generation.
- ✓Q4 FY26 results reported 6% volume growth beating consensus estimates, with revenue up 8% YoY — the strongest near-term operational data point in the recent record.
- ✓Quality score of 58 ranks 2nd among 6 FMCG peers tracked, and the stock holds 2nd-lowest PE (50.5) in the peer set, which spans from 18.9 (ITC) to 81.6 (Nestle India).
- ✓Lowest PE in the FMCG peer group at 18.89x, versus a peer range of 50–81x (HINDUNILVR 50x, NESTLEIND 81x, BRITANNIA 52x, GODREJCP 57x, TATACONSUM 76x).
- ✓Profit margin of 43.89% stands as the most distinctive fundamental metric in this data set — well above the level typical of packaged-goods businesses.
- ✓Dividend yield of 4.67% is the highest income return visible among the FMCG peers in this cycle.
- ✓FCF-positive in 4 of the last available years and consistency score of 81, indicating above-average earnings reliability relative to reported peers.
Cons
- ✗Debt-to-equity of 3.02 is rising and stands well above the typical FMCG sector range, introducing leverage risk that is uncommon for a consumer staples name of this profile.
- ✗Price has remained below the 200-DMA for a sustained period, with a -16.16% drawdown from the 52-week high and a -2.18% 1-year return despite positive operational results.
- ✗5-year revenue CAGR of 4.3% is low relative to the premium valuation (PE 50.5); if margin expansion plateaus, earnings growth could revert toward the revenue growth rate.
- ✗Consistency score of 57 and quality score of 58 place the stock in mid-tier within FMCG peers despite its size and brand strength, suggesting the data does not strongly differentiate it on a composite quality basis.
- ✗Five-year earnings growth of 0% against 6.7% revenue CAGR signals that profitability has failed to compound over the measurement window — a sustained divergence between top-line and bottom-line growth.
- ✗Price is 15.2% below the 200-DMA (₹307.45 vs ₹362.33) and has declined 26.6% over 12 months, reaching levels described in press coverage as a 3-year low.
- ✗Quality score of 44 ranks 5th out of 6 FMCG peers on the composite metric used in this analysis, despite the superior profit margin — indicating structural offsets such as capital intensity, cigarette-regulatory risk premium, or ROE drag.
- ✗FII outflows are cited in recent news as a direct pressure on the stock; the combination of index weight reduction and foreign selling has coincided with the sustained price decline.
Want the full analysis for either stock?
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Comparison reflects current public data; consult a registered adviser before any investment decision.