1. 🧠 At a Glance
HUL is India’s most prestigious FMCG stock, the one you buy for your retirement and then forget. It’s got iconic brands, massive market share, and zero debt. But over the past 5 years, investors are asking — where’s the growth? Margins are stable, profits are growing slowly, and the stock… well, it’s been mostly on mute.
2. 🎬 Introduction with Hook
You know a stock has reached peak prestige when your dad swears by it, your aunt drinks only its tea, and your mom stocks Surf Excel like it’s going out of fashion. But Hindustan Unilever — the ₹6 lakh crore FMCG titan — has been facing a problem that soap can’t wash away: slow growth.
In a world where ITC discovered hoteliers, Dabur sells chyawanprash with protein, and Patanjali gets SEBI cases before new SKUs, HUL’s once-golden FMCG dominance is losing its fizz.
3. 🏭 Business Model (WTF Do They Even Do?)
- Operates across 3 major segments:
- Home Care: Surf Excel, Vim, Domex
- Beauty & Personal Care: Dove, Lux, Lifebuoy, Clinic Plus
- Foods & Refreshments: Brooke Bond, Lipton, Horlicks (after GSK merger), Kissan
- Portfolio of 50+ brands, with 19 of them clocking ₹1,000+ Cr in annual sales.
- Pan-India distribution with 8.5+ million retail touchpoints
- Massive rural penetration and pricing power, but fighting low-cost competition from local and D2C upstarts
4. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | ₹47,028 Cr | ₹52,446 Cr | ₹60,580 Cr | ₹61,896 Cr | ₹63,121 Cr |
| Net Profit | ₹7,999 Cr | ₹8,892 Cr | ₹10,143 Cr | ₹10,282 Cr | ₹10,671 Cr |
| OPM % | 25% | 25% | 23% | 24% | 24% |
| ROCE | 39% | 25% | 27% | 27% | 28% |
| ROE | 34% | 38% | 21% | 21% | 20.7% |
🧾 Verdict: Stable margins, flat ROE, and single-digit profit growth = FMCG fatigue.
5. 📉 Valuation – Is It Cheap, Meh, or Crack?
- Current Price: ₹2,520
- P/E: 56.8x
- P/B: 12x
- Dividend Yield: 1.7%
EduInvesting FV Range: ₹1,575–₹1,800 (based on 35–40x EPS of ₹45)
The market is still pricing HUL like it’s in 2019. But 2025’s HUL has slower growth and stronger challengers.
6. 🍿 What’s Cooking – News, Triggers, Drama
- 👩💼 Leadership change: Priya Nair to become MD & CEO from August 2025. She’s a veteran HUL marketer, now stepping into the hot seat.
- 📦 Rural slowdown: HUL is heavily rural dependent. Rural demand post-COVID hasn’t recovered meaningfully.
- ☕ Food & Beverages struggling: Horlicks and Boost haven’t boosted anything. Beverages are under pressure.
- 💄 BPC headwinds: Premiumization is slow, and mass market is being eaten by Mamaearths of the world.
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
- Debt: ₹1,648 Cr (but negligible compared to cash flows)
- Reserves: ₹49,167 Cr
- Fixed Assets: ₹54,335 Cr
- CWIP: ₹1,009 Cr
🧼 Balance sheet remains a fortress. Zero solvency worries here.
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | ₹9,991 Cr | ₹-1,484 Cr | ₹-8,953 Cr | ₹-446 Cr |
| FY24 | ₹15,469 Cr | ₹-5,324 Cr | ₹-10,034 Cr | ₹111 Cr |
| FY25 | ₹11,886 Cr | ₹6,473 Cr | ₹-13,101 Cr | ₹5,258 Cr |
- High dividend outgo = negative CFF
- FY25 sees spike in investing inflows — possibly internal cash adjustments
9. 📐 Ratios – Sexy or Stressy?
- ROE: 20.7% (falling)
- ROCE: 28%
- OPM: 24% (consistent)
- Cash Conversion Cycle: -71 days (elite efficiency)
- Inventory Days: 59
- Payables Days: 152
Verdict: Ratios are elite, but returns are plateauing.
10. 💸 P&L Breakdown – Show Me the Money
- Other Income up to ₹1,322 Cr in FY25 — a big boost to PBT
- Depreciation rising slowly — ₹1,355 Cr in FY25
- Interest expense still minor — ₹395 Cr
- Tax rate steady at ~26%
👀 Net profit growth is being juiced by other income, not core operating gains.
11. 🧊 Peer Comparison – Who Else in the Game?
| Company | P/E | ROCE | Dividend Yield | 5Y Stock CAGR |
|---|---|---|---|---|
| HUL | 56.8 | 28% | 1.7% | 3% |
| ITC | 26.4 | 36.8% | 3.4% | 21% |
| Dabur | 49.6 | 26% | 0.9% | 8% |
| Marico | 52.0 | 31% | 1.2% | 9% |
😬 HUL looks overvalued vs. peers — especially with lower growth.
12. 🧬 Miscellaneous – Shareholding, Promoters
- Promoter Holding: 61.9% (Unilever Plc)
- FII Holding: Down from 14.4% to 10.2% in 2 years
- DII Holding: Up from 11.5% to 16% — smart money rotating
- Retail Holding: ~12% steady
- No major pledging or red flags
🔁 Foreign investors are quietly exiting. Interesting.
13. 🧑⚖️ EduInvesting Verdict™
HUL is the Virat Kohli of FMCG — consistent, disciplined, but out of form.
✅ Great business
✅ Clean balance sheet
✅ Huge brand moat
But:
❌ Growth fatigue
❌ Overvalued vs. peers
❌ Dividend is not enough to justify 56x earnings
Until new triggers emerge (CEO magic? Rural bounceback?), this one may just lather… but not rinse or repeat.
✍️ Written by Prashant | 🗓️ July 11, 2025
Tags: Hindustan Unilever stock analysis, HUL 5 year financials, FMCG stocks India, Priya Nair HUL, HUL valuation 2025, EduInvesting
