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: 57/100
ITC Ltd.
FMCG
Quality Score: 47/100
At a glance
| Metric | HINDUNILVR | ITC |
|---|---|---|
| Quality Score | 57/100 | 47/100 |
| P/E (trailing) | 46.9 | 17.8 |
| Forward P/E | 39.6 | 16.7 |
| ROE | +21.6% | +29.3% |
| Profit margin | +23.3% | +26.2% |
| Debt-to-equity | 3.02 | 3.29 |
| Dividend yield | +2.07% | +5.47% |
| 1Y price return | -8.2% | -26.5% |
| From 52w high | -22.3% | -28.2% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | — | 2.50 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Hindustan Unilever (₹2,121.5) is an FMCG franchise ranked 2nd in quality score among 6 tracked peers, with ROE of 21.6%, profit margin of 23.3%, and FCF positive in 4 of the last 4 available years. The stock trades below both its 50-DMA (₹2,203.76) and 200-DMA (₹2,362.71), is 22.25% off its 52-week high, and has delivered a 1-year price return of -8.15%. Trailing PE of 46.9 sits at the upper end of the FMCG peer range while 5-year revenue growth of 4.3% is modest.
ITC trades at ₹292.5, down 26.51% over the past 12 months and 28.16% below its 52-week high, with the price below both the 50-DMA (₹293.83) and 200-DMA (₹337.44). The stock carries a PE of 17.81 — the lowest among its 6 FMCG peers — alongside a dividend yield of 5.47% and ROE of 29.34%, set against 5-year earnings growth of -72.7% and revenue contraction of -5%. Debt-to-equity stands at 3.292 on a rising trend, and the quality score of 39 places ITC 5th of 6 in its FMCG peer group.
Pros
- ✓ROE of 21.6% has remained above 15% in 4 of the 4 years available in the persistence window, ranking 4th among 6 tracked FMCG peers (Nestle: 76.3%, Britannia: 53.3%, ITC: 29.3%, HINDUNILVR: 21.6%).
- ✓Profit margin of 23.3% and FCF positive in 4 of 4 available years indicate consistent cash generation from the consumer goods operations.
- ✓Quality score of 58 ranks 2nd among 6 FMCG peers (Nestle: 61, HINDUNILVR: 58, Britannia: 50, Tata Consumer: 45, ITC: 41, Godrej CP: 38).
- ✓Dividend yield of 2.07% and forward PE of 39.6 (vs trailing 46.9) reflect an earnings growth expectation priced into the current multiple; 5-year earnings CAGR of 21.4% supports the direction of that expectation historically.
- ✓ROE of 29.34% ranks 3rd among 6 FMCG peers and exceeds HINDUNILVR (21.6%) and GODREJCP (15.1%), with FCF positive in 4 of the tracked years.
- ✓Dividend yield of 5.47% is notable in the FMCG sector context, where peers like NESTLEIND (PE 78.27) and HINDUNILVR (PE 48.71) carry materially higher valuations.
- ✓PE of 17.81 and forward PE of 16.69 represent the lowest absolute valuation in the 6-stock FMCG peer set; nearest peer is GODREJCP at 55.08.
- ✓Profit margin of 26.23% is consistent with ITC's diversified business mix, and RSI of 55.15 is in neutral territory, not in technically oversold range.
Cons
- ✗Price at ₹2,121.5 is below both the 50-DMA (₹2,203.76) and the 200-DMA (₹2,362.71) and is 22.25% below the 52-week high, with a 1-year return of -8.15% and a 3-month return of -5.92%.
- ✗D/E of 3.02 is elevated relative to the FMCG sector norm and the persistence window shows a rising debt trend across the 4 available years, adding balance-sheet concentration risk.
- ✗5-year revenue CAGR of 4.3% is low; the wide gap versus the 21.4% 5-year earnings CAGR suggests profit growth has been driven by margin expansion and pricing rather than volume-led top-line compounding.
- ✗RSI of 39.6 and nearest support levels at ₹2,033 and ₹2,023 indicate price momentum is weakening, with the gap between current price and 200-DMA resistance at ₹2,363 representing a 11.4% distance to recover.
- ✗5-year earnings growth of -72.7% and 5-year revenue growth of -5% reflect sustained multi-year contraction across both metrics, extending well beyond any single quarter.
- ✗Price ₹292.5 remains below the 50-DMA (₹293.83) and 200-DMA (₹337.44), with a 26.51% 12-month decline and a 52-week drawdown of -28.16%; the stock has not reclaimed either moving average.
- ✗Debt-to-equity of 3.292 on a rising trend is elevated relative to the FMCG sector median, with declining earnings increasing the financial leverage risk profile.
- ✗Quality score of 39 places ITC 5th of 6 in the FMCG peer set, with consistency score of 43 and ROE above 15% in only 4 of the tracked years, indicating uneven fundamental quality.
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