HINDUNILVR vs NESTLEIND
Side-by-side comparison of Hindustan Unilever Ltd. and Nestle India Ltd.. Descriptive only — not investment advice.
Hindustan Unilever Ltd.
FMCG
Quality Score: 57/100
Nestle India Ltd.
FMCG
Quality Score: 68/100
At a glance
| Metric | HINDUNILVR | NESTLEIND |
|---|---|---|
| Quality Score | 57/100 | 68/100 |
| P/E (trailing) | 46.9 | 78.3 |
| Forward P/E | 39.6 | 59.7 |
| ROE | +21.6% | +76.3% |
| Profit margin | +23.3% | +15.1% |
| Debt-to-equity | 3.02 | 8.62 |
| Dividend yield | +2.07% | +0.85% |
| 1Y price return | -8.2% | +20.9% |
| From 52w high | -22.3% | -5.6% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | — | 2.42 |
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.
Nestle India trades at ₹1,414.80, up 20.95% over 12 months and 19.26% over the past 3 months, sitting 5.56% below its 52-week high and above both the 50-DMA (₹1,406.30) and 200-DMA (₹1,285.41). The company reports a trailing ROE of 76.34% — highest among 6 tracked FMCG peers — alongside a 5-year revenue CAGR of 23% and earnings CAGR of 27.4%, but carries a D/E of 8.621 with a rising debt trend that diverges from the asset-light FMCG profile. Trailing PE of 78.27 is the richest in the peer group; forward PE compresses to 59.71.
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 76.34% ranks 1st of 6 FMCG peers (next best: BRITANNIA at 53.31%), demonstrating high capital efficiency over the available 3-year window.
- ✓Quality score of 61 ranks 1st in the peer set (range 38–58 for peers), with FCF positive in all 3 reported years and a 5-year earnings CAGR of 27.4%.
- ✓Price action is constructive: up 20.95% over 12 months and 19.26% over 3 months; RSI of 52.96 is in neutral territory with the stock above both 50-DMA and 200-DMA.
- ✓Revenue growth of 23% over 5 years and profit margin of 15.14% reflect durable top-line and bottom-line expansion over the available history.
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.
- ✗D/E of 8.621 with a rising debt trend is elevated relative to FMCG peers and structurally inconsistent with the asset-light franchise model typical of this peer group.
- ✗Persistence data spans only 3 years — the consistency score of 65/100 and high ROE cannot be verified across a broader cycle, limiting confidence in the long-run track record.
- ✗Trailing PE of 78.27 is the richest in the 6-peer FMCG set; the forward PE of 59.71 still exceeds all five peers on a trailing basis, compressing the margin relative to sector valuation.
- ✗News flow is sparse (4 articles total, 0 positive) with one FSSAI regulatory action headline involving Nestle among named brands — a low-level but active regulatory watchpoint.
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