Imagine walking down the aisles of your local store, eyes skimming over shelves packed with everyday essentials. In that labyrinth of goods, you’ll find a brand that’s become synonymous with Indian households – Hindustan Unilever. Known for its footprint in Home Care, Beauty & Personal Care, and Foods & Refreshment, HUL isn’t just about products; it’s about moments.
Delving into its financial canvas, HUL showcases a strong framework, boasting consistent growth in sales, underpinned by a diverse product portfolio. However, the intrigue lies in the projection of its stock value. The aspiration to touch the milestone of 3000 is not merely a numerical benchmark but a testament to the company’s potential for exponential growth.
Through a financial lens, analyzing HUL’s trajectory unveils an intriguing narrative of stability and expansion. It’s a journey underscored by strong market penetration and unwavering consumer trust. This exploration seeks to decipher the financial markers that signify HUL’s upward momentum, aiming for that coveted stock price target of 3000, a beacon of promise in the realm of investment aspirations.
About Hindustan Unilever
Hindustan Unilever Limited (HUL), a stalwart in the FMCG domain, operates across three key segments: Beauty & Personal Care, Home Care, and Foods & Refreshments. With an extensive portfolio of over 900 SKUs, its Beauty & Personal Care arm contributes 42% of revenues, yielding impressive margins of approximately 29%. Brands like Dove, Pepsodent, and Lakme are among the household names under this segment.
Comprising 29% of revenues, the Home Care division encompasses a wide array of products catering to diverse economic strata, boasting brands such as Vim, Surf Excel, and Pureit. Meanwhile, the Foods & Refreshments segment, also accounting for 29% of revenues, offers an array of food items and beverages including Knorr, Lipton, and Horlicks, aligning with a strategy focused on innovation and increased market penetration.
HUL’s market dominance extends across various product categories, securing its leadership in skin cleansing, hair care, fabric wash, and several others, marking its presence in around 90% of the businesses it operates in.
The company’s expansive footprint spans 80+ lakh stores nationwide, penetrating nearly 90% of Indian households. Notably, 96% of its revenue stems from India, underlining its primary market base.
Besides, HUL’s innovative approach through initiatives like ‘Shikhar’ app, tailored e-commerce portfolios, and strategic acquisitions like Indulekha, Vwash, and the monumental merger with GlaxoSmithKline Consumer Healthcare Ltd, highlighting its vision and commitment to growth and diversification.
Hindustan Unilever Q3 Fy2024 Key Points And Summary:
- HUL’s Q3 FY24 net profit stood at Rs 2,519 crore, marking a modest increase of 0.55% compared to the same period last year. However, this figure fell short of market expectations. Analysts had anticipated a higher net profit of Rs 2,678 crore based on a poll of six brokerages.
- Despite the slight growth in net profit, HUL experienced a marginal decline in total revenue for the quarter, reporting Rs 14,928 crore. This decrease was a mere 0.38% compared to the year-ago quarter. Sequentially, there was a 0.6% dip in revenue from the previous quarter.
- The company’s underlying volume growth (UVG) stood at 2%, indicating a moderate increase in sales volume across its product portfolio.
- Revenue performance varied across different segments of HUL’s business. In the Home Care segment, there was a slight decrease in revenue during the quarter, although the business exhibited robust double-digit growth of 14% on a 2-year Compound Annual Growth Rate (CAGR) basis.
- The Beauty & Personal Care segment maintained steady revenue with mid-single digit UVG, while the Foods & Refreshment segment saw a 1% increase in revenue. Notable performances were observed in categories such as Tea, Coffee, and Health Food Drinks.
- CEO Rohit Jawa underscored the company’s commitment to driving competitive volume growth and strategic investments despite the prevailing market challenges. He expressed confidence in the long-term potential of the Indian FMCG sector and emphasized the importance of navigating short-term hurdles while focusing on long-term growth objectives.
- HUL’s shares closed 0.78% higher on the National Stock Exchange, reflecting positive market sentiment towards the company despite the slightly below-expected Q3 results.
Shareholding Pattern
| Sep 2022 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | |
| Promoters + | 61.90% | 61.90% | 61.90% | 61.90% | 61.90% |
| FIIs + | 14.05% | 14.32% | 14.36% | 14.48% | 13.90% |
| DIIs + | 11.72% | 11.50% | 11.51% | 11.47% | 11.90% |
| Government + | 0.04% | 0.04% | 0.04% | 0.04% | 0.04% |
| Public + | 12.32% | 12.23% | 12.17% | 12.09% | 12.26% |
| No. of Shareholders | 11,39,754 | 11,18,431 | 11,27,982 | 10,96,270 | 11,76,411 |
The shareholding pattern of Hindustan Unilever over the specified period indicates a relative stability in the ownership structure with minor fluctuations among different investor categories.
- Promoters:
- Maintained a consistent control over 61.90% of the shares, indicating a firm and unwavering stance in their ownership.
- FIIs (Foreign Institutional Investors):
- Witnessed slight variations, fluctuating between 13.90% and 14.48%, implying a moderate but somewhat consistent interest in the company’s stock.
- DIIs (Domestic Institutional Investors):
- Displayed a stable ownership pattern, hovering around 11.47% to 11.90%, signaling sustained interest from domestic institutional investors.
- Government and Public:
- Government’s holding remained static at 0.04%, portraying no significant changes in its stake.
- Public ownership ranged between 12.09% and 12.32%, showing a consistent, yet moderate, interest among individual shareholders.
The number of shareholders fluctuated marginally, ranging from 10,96,270 to 11,76,411, indicating a consistent investor interest despite slight variations.
Overall, the consistent holding by promoters signifies confidence in the company’s performance, while the stability in FII and DII holdings suggests sustained interest from both domestic and foreign institutional investors. The public’s consistent moderate interest portrays a steady appeal among individual shareholders. These stable ownership percentages collectively reflect a balanced and relatively unaltered investor sentiment in Hindustan Unilever during the specified timeframe.
Hindustan Unilever Share Price Target 2024 To 2030
Hindustan Unilever Share Price Target 2024
| When | Maximum Price | Minimum Price |
| March 2024 | ₹2,433.20 | ₹2,115.83 |
| April 2024 | ₹2,362.33 | ₹2,054.20 |
| May 2024 | ₹2,327.42 | ₹2,023.84 |
| June 2024 | ₹2,411.21 | ₹2,096.70 |
| July 2024 | ₹2,387.09 | ₹2,075.73 |
| August 2024 | ₹2,482.58 | ₹2,158.76 |
| September 2024 | ₹2,581.88 | ₹2,245.11 |
| October 2024 | ₹2,531.26 | ₹2,201.09 |
| November 2024 | ₹2,632.51 | ₹2,289.14 |
| December 2024 | ₹2,658.83 | ₹2,312.03 |
In March 2024, Hindustan Unilever is predicted to witness a maximum price of ₹2,433.20 and a minimum price of ₹2,115.83, initiating the year with a range of stock value. Throughout the year, fluctuations are expected in response to market dynamics and company performance. However, as December approaches, projections suggest a notable uptick, with the maximum price soaring to ₹2,658.83 and the minimum settling at ₹2,312.03. This month is anticipated to mark a culmination of market trends, reflecting significant growth and volatility for Hindustan Unilever’s stock prices, embodying the journey and outcomes of the entire fiscal year.
Hindustan Unilever Share Price Target 2025
| When | Maximum Price | Minimum Price |
| January 2025 | ₹2,661.49 | ₹2,047.30 |
| February 2025 | ₹2,666.82 | ₹2,051.40 |
| March 2025 | ₹2,722.83 | ₹2,094.48 |
| April 2025 | ₹2,669.44 | ₹2,053.41 |
| May 2025 | ₹2,591.69 | ₹1,993.61 |
| June 2025 | ₹2,708.31 | ₹2,083.32 |
| July 2025 | ₹2,655.21 | ₹2,042.47 |
| August 2025 | ₹2,737.33 | ₹2,105.64 |
| September 2025 | ₹2,770.18 | ₹2,130.91 |
| October 2025 | ₹2,842.20 | ₹2,186.31 |
| November 2025 | ₹2,913.26 | ₹2,240.97 |
| December 2025 | ₹3,044.35 | ₹2,341.81 |
In 2025, Hindustan Unilever’s stock prices are expected to fluctuate throughout the year. January and February are projected to witness prices ranging from ₹2,661.49 to ₹2,047.30, and ₹2,666.82 to ₹2,051.40, respectively. As the year progresses, March is anticipated to bring a rise in both maximum and minimum prices to ₹2,722.83 and ₹2,094.48, followed by slight fluctuations in April, May, and June. However, December is forecasted to be a significant month, with the maximum price soaring to ₹3,044.35 and the minimum reaching ₹2,341.81, reflecting potential market volatility and growth for Hindustan Unilever.
Hindustan Unilever Share Price Target 2026 To 2030
| Year | Maximum Price | Minimum Price |
|---|---|---|
| 2026 | ₹4,177.49 | ₹2,924.24 |
| 2027 | ₹4,595.24 | ₹3,216.67 |
| 2028 | ₹6,433.33 | ₹3,216.67 |
| 2029 | ₹5,569.98 | ₹2,784.99 |
| 2030 | ₹7,240.98 | ₹5,068.69 |
2026:
The projected Hindustan Unilever share prices for 2026 are expected to range between ₹2,924.24 and ₹4,177.49. This upward trend reflects the company’s sustained market dominance, propelled by effective strategies, innovative products, and a robust financial track record. The projected surge is buoyed by an optimistic market sentiment and HUL’s adeptness in meeting evolving consumer demands.
2027:
Anticipated to range from ₹3,216.67 to ₹4,595.24, the HUL share prices for 2027 indicate a substantial uptick. This growth is rooted in the company’s continued expansion and innovation, fostering investor confidence. Economic stability and consumer spending are expected to contribute significantly to this upward trajectory.
2028:
With an estimated range of ₹3,216.67 to ₹6,433.33, the projected share prices for 2028 signal a remarkable surge. This growth is underpinned by HUL’s sustained market leadership and strategic initiatives. Favorable market conditions and potential breakthroughs in product innovation may further drive this exponential rise.
2029:
Projections ranging between ₹2,784.99 and ₹5,569.98 for 2029 indicate continued optimism. HUL’s consistent performance, coupled with market stability and consumer confidence, is poised to bolster the company’s stock value. However, prudent consideration of market dynamics remains crucial.
2030:
The expected share prices for 2030 range from ₹5,068.69 to ₹7,240.98, representing a significant leap. HUL’s market resilience, innovative edge, and sustained growth strategies are likely contributors. Market conditions and the company’s ability to navigate potential challenges will influence the trajectory toward this anticipated high.
These projections are subject to market fluctuations and unforeseen variables, emphasizing the need for continuous monitoring and analysis
Hindustan Unilever’s Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 39,310 | 39,783 | 47,028 | 52,446 | 60,580 | 61,931 |
| Expenses + | 30,430 | 29,930 | 35,402 | 39,589 | 46,432 | 47,205 |
| Operating Profit | 8,880 | 9,853 | 11,626 | 12,857 | 14,148 | 14,726 |
| OPM % | 23% | 25% | 25% | 25% | 23% | 24% |
| Other Income + | 322 | 432 | 170 | 219 | 447 | 570 |
| Interest | 33 | 118 | 117 | 106 | 114 | 196 |
| Depreciation | 565 | 1,002 | 1,074 | 1,091 | 1,137 | 1,167 |
| Profit before tax | 8,604 | 9,165 | 10,605 | 11,879 | 13,344 | 13,933 |
| Tax % | 30% | 26% | 25% | 25% | 24% | |
| Net Profit + | 6,060 | 6,756 | 7,999 | 8,892 | 10,143 | 10,295 |
| EPS in Rs | 27.97 | 31.17 | 34.03 | 37.79 | 43.07 | 43.77 |
| Dividend Payout % | 78% | 80% | 119% | 90% | 91% |
Hindustan Unilever’s financial performance over the last five years reflects a trajectory of consistent growth and resilience, albeit with certain noteworthy fluctuations. The company demonstrated an impressive uptick in both sales and operating profits, showcasing an upward trend from ₹39,310 crores in March 2019 to ₹60,580 crores in March 2023. However, expenses mirrored this growth pattern, albeit with a slightly sharper increase, reaching ₹46,432 crores in March 2023.
The operating profit margin maintained relative stability, hovering around 23% to 25%, reflecting HUL’s adeptness in managing costs despite market fluctuations. Notably, the net profit surged from ₹6,060 crores in March 2019 to ₹10,143 crores in March 2023, indicating the company’s sustained profitability and operational efficiency.
The consistent growth in earnings per share (EPS) from ₹27.97 in March 2019 to ₹43.07 in March 2023 underscores the company’s ability to create value for its shareholders. However, the dividend payout percentage experienced fluctuations, notably reaching 119% in March 2021, suggesting a distribution surpassing the earnings, albeit returning to a more sustainable level in subsequent years.
HUL’s ability to consistently grow its revenue, manage operational costs, and maintain a healthy profit margin speaks volumes about its market position and strategic resilience. However, the variations in dividend payouts warrant a closer examination of the company’s dividend policies vis-à-vis its earnings to ensure sustainable shareholder returns.
FAQS
Question: What is the price of Hindustan Unilever Ltd (HUL) for 2025?
HUL could trade ₹3,044.35 by the end of 2025.
Question: What is the current stock price of Hindustan Unilever Ltd (HUL) as of March 10, 2024?
Answer: As latest data available, the closing stock price of Hindustan Unilever Ltd (HUL) is ₹ 2,420.
Question: What is the market capitalization of Hindustan Unilever Ltd (HUL) as of the latest available data?
Answer: The market capitalization of Hindustan Unilever Ltd (HUL) stands at ₹ 5,68,495 Crores.
Question: What is the Price-to-Earnings (P/E) ratio of Hindustan Unilever Ltd (HUL) based on the current stock price?
Answer: The Price-to-Earnings (P/E) ratio for Hindustan Unilever Ltd (HUL) is 55.1.
Question: What is the Dividend Yield of Hindustan Unilever Ltd (HUL) based on the latest data?
Answer: The Dividend Yield for Hindustan Unilever Ltd (HUL) is 1.61 %.
Should one invest in Hindustan Unilever?
In conclusion, Hindustan Unilever Limited (HUL) stands as a beacon of strength and innovation in the FMCG industry. Despite occasional fluctuations, its consistent financial performance reflects robust growth and resilience. Moreover, the company’s recent Q3 results, while slightly below market expectations, underscore its commitment to navigating challenges and driving competitive volume growth. As HUL continues to leverage its diverse product portfolio and strategic initiatives, it remains well-positioned for sustained success and value creation for shareholders. With a focus on financial stability and strategic growth, HUL’s future outlook shines brightly, inspiring confidence and positivity in the market landscape.
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