InCred Equities - Hindustan Unilever Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	604,690	633,978	674,855	734,170
Operating EBITDA (Rsm)	141,900	150,373	164,200	184,037
Net Profit (Rsm)	100,253	107,368	117,583	132,661
Core EPS (Rs)	42.9	45.7	50.0	56.5
Core EPS Growth	1.4%	6.4%	9.5%	12.8%
FD Core P/E (x)	56.50	52.76	48.17	42.70
DPS (Rs)	39.0	41.0	44.9	50.7
Dividend Yield	1.62%	1.70%	1.86%	2.10%
EV/EBITDA (x)	39.12	37.13	33.94	30.24
P/FCFE (x)	48.44	89.25	48.44	44.78
Net Gearing	(20.3%)	(13.5%)	(15.4%)	(16.3%)
P/BV (x)	11.11	10.88	10.63	10.37
ROE	19.9%	20.8%	22.3%	24.6%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	604,690	633,978	674,855	734,170
Gross Profit	311,420	334,745	361,728	400,128
Operating EBITDA	141,900	150,373	164,200	184,037
Depreciation And Amortisation	(10,970)	(11,000)	(12,000)	(12,500)
Operating EBIT	130,930	139,373	152,200	171,537
Financial Income/(Expense)	2,490	2,061	2,667	3,334
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	4,223	4,645	5,110	5,621
Profit Before Tax (pre-EI)	137,643	146,079	159,977	180,491
Exceptional Items	(890)
Pre-tax Profit	136,753	146,079	159,977	180,491
Taxation	(35,610)	(38,711)	(42,394)	(47,830)
Exceptional Income - post-tax
Profit After Tax	101,143	107,368	117,583	132,661
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax	(890)
Net Profit	100,253	107,368	117,583	132,661
Recurring Net Profit	100,911	107,368	117,583	132,661
Fully Diluted Recurring Net Profit	100,911	107,368	117,583	132,661

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	141,900	150,373	164,200	184,037
Cash Flow from Invt. & Assoc.
Change In Working Capital	42,650	(42,405)	(143)	(6,169)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(890)
Other Operating Cashflow	9,733	10,706	11,777	12,955
Net Interest (Paid)/Received	(3,020)	(4,000)	(4,000)	(4,000)
Tax Paid	(35,610)	(38,711)	(42,394)	(47,830)
Cashflow From Operations	154,763	75,963	129,439	138,992
Capex	(20,850)	(12,500)	(12,500)	(12,500)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments	(16,990)
Other Investing Cashflow
Cash Flow From Investing	(37,840)	(12,500)	(12,500)	(12,500)
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(93,980)	(96,442)	(105,617)	(119,161)
Preferred Dividends
Other Financing Cashflow	1,647
Cash Flow From Financing	(92,333)	(96,442)	(105,617)	(119,161)
Total Cash Generated	24,590	(32,979)	11,322	7,330
Free Cashflow To Equity	116,923	63,463	116,939	126,492
Free Cashflow To Firm	119,943	67,463	120,939	130,492

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	117,260	85,081	103,953	112,083
Total Debtors	26,900	27,031	29,136	32,696
Inventories	38,120	32,506	36,420	49,539
Total Other Current Assets	45,710	44,842	45,062	45,383
Total Current Assets	227,990	189,459	214,571	239,701
Fixed Assets	359,780	361,280	361,780	361,780
Total Investments	9,830	9,830	9,830	9,830
Intangible Assets	173,160	173,160	173,160	173,160
Total Other Non-Current Assets	(64,540)	(64,540)	(64,540)	(64,540)
Total Non-current Assets	478,230	479,730	480,230	480,230
Short-term Debt	3,400	3,400	3,400	3,400
Current Portion of Long-Term Debt
Total Creditors	163,950	117,920	123,117	132,635
Other Current Liabilities
Total Current Liabilities	167,350	121,320	126,517	136,035
Total Long-term Debt	10,340	11,140	18,690	19,490
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities	10,340	11,140	18,690	19,490
Total Provisions	18,800	16,073	16,973	18,285
Total Liabilities	196,490	148,534	162,180	173,810
Shareholders Equity	509,730	520,656	532,621	546,121
Minority Interests
Total Equity	509,730	520,656	532,621	546,121

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	2.2%	4.8%	6.4%	8.8%
Operating EBITDA Growth	4.1%	6.0%	9.2%	12.1%
Operating EBITDA Margin	23.5%	23.7%	24.3%	25.1%
Net Cash Per Share (Rs)	44.05	30.02	34.84	37.95
BVPS (Rs)	216.91	221.56	226.65	232.39
Gross Interest Cover	43.35	34.84	38.05	42.88
Effective Tax Rate	26.0%	26.5%	26.5%	26.5%
Net Dividend Payout Ratio	90.6%	89.8%	89.8%	89.8%
Accounts Receivables Days	16.37	15.52	15.19	15.37
Inventory Days	48.81	43.07	40.17	46.96
Accounts Payables Days	179.97	171.91	140.48	139.73
ROIC (%)	31.5%	30.5%	33.2%	36.9%
ROCE (%)	26.3%	27.5%	29.2%	31.8%
Return On Average Assets	14.5%	15.3%	16.8%	18.3%

(91) 22 4161 1561 rohan.kalle@incredresearch.com

(91) 22 4161 1564 nishant.bagrecha@incredresearch.com

(91) 2241611558 saurabh.singh@incredresearch.com

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Market Data

Source: Bloomberg