Hindustan Unilever Ltd.
FMCG · NSE
52-week range
₹2,023 – ₹2,729
From 52w high
-16.2%
RSI (14)
54.3
vs SMA 50 / 200
↑ 50 · ↓ 200
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.
- ✓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).
- ✗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.
- ·Q4 FY26 earnings (reported April 30, 2026) showed 6% volume growth and 8% YoY revenue increase, described by coverage as beating estimates; the stock was up 14% in the month preceding the results per one headline.
- ·Mean analyst rating of 2.05 across 37 analysts (1–5 scale, lower = more constructive) reflects a constructive skew in current sell-side coverage.
- ·News sentiment across 8 recent articles skews positive (3 positive, 5 neutral, 0 negative), with all headlines centred on Q4 results and the dividend announcement rather than adverse operational or regulatory developments.
- ?Given that 5-year earnings growth (21.4% CAGR) has substantially outrun revenue growth (4.3% CAGR), what is the realistic ceiling for further margin expansion, and what happens to the earnings trajectory if that ceiling is reached?
- ?The D/E of 3.02 is rising and atypical for an FMCG company — what is the nature of this debt (working capital, acquisition financing, or structural), and how does the repayment timeline interact with FCF generation?
- ?Price has underperformed over 1 year despite a beat-and-raise Q4 — is this a valuation de-rating (PE compression from a higher base), a sector-wide rotation, or a stock-specific concern that the headline numbers do not capture?
- ?Does the 21.6% ROE reflect a durable competitive moat in the branded FMCG business, or is it partly a function of the elevated D/E amplifying returns on a modest equity base?
PE
50.5
Forward PE
42.7
ROE
+21.6%
Profit margin
+23.3%
D/E
3.02
Dividend yield
+1.9%
Quality score
58/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.