InCred Equities - Hindustan Unilever Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	604,690	617,872	657,674	715,561
Operating EBITDA (Rsm)	141,900	144,354	155,715	169,691
Net Profit (Rsm)	100,253	102,798	111,420	121,933
Core EPS (Rs)	42.9	43.7	47.4	51.9
Core EPS Growth	1.4%	1.9%	8.4%	9.4%
FD Core P/E (x)	52.46	51.16	47.20	43.13
DPS (Rs)	39.0	39.3	42.6	46.6
Dividend Yield	1.74%	1.76%	1.90%	2.08%
EV/EBITDA (x)	36.26	35.76	33.09	30.30
P/FCFE (x)	44.98	69.77	47.41	43.94
Net Gearing	(20.3%)	(16.6%)	(18.3%)	(19.8%)
P/BV (x)	10.32	10.11	9.89	9.67
ROE	19.9%	20.0%	21.2%	22.7%
% 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	617,872	657,674	715,561
Gross Profit	311,420	320,058	346,594	384,256
Operating EBITDA	141,900	144,354	155,715	169,691
Depreciation And Amortisation	(10,970)	(11,200)	(11,900)	(12,750)
Operating EBIT	130,930	133,154	143,815	156,941
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	139,861	151,592	165,895
Exceptional Items	(890)
Pre-tax Profit	136,753	139,861	151,592	165,895
Taxation	(35,610)	(37,063)	(40,172)	(43,962)
Exceptional Income - post-tax
Profit After Tax	101,143	102,798	111,420	121,933
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax	(890)
Net Profit	100,253	102,798	111,420	121,933
Recurring Net Profit	100,911	102,798	111,420	121,933
Fully Diluted Recurring Net Profit	100,911	102,798	111,420	121,933

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	141,900	144,354	155,715	169,691
Cash Flow from Invt. & Assoc.
Change In Working Capital	42,650	(26,126)	101	(2,489)
(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)	(37,063)	(40,172)	(43,962)
Cashflow From Operations	154,763	87,872	123,421	132,194
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)	(92,337)	(100,082)	(109,525)
Preferred Dividends
Other Financing Cashflow	1,647
Cash Flow From Financing	(92,333)	(92,337)	(100,082)	(109,525)
Total Cash Generated	24,590	(16,965)	10,839	10,169
Free Cashflow To Equity	116,923	75,372	110,921	119,694
Free Cashflow To Firm	119,943	79,372	114,921	123,694

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	117,260	101,095	119,485	130,454
Total Debtors	26,900	16,667	19,513	23,167
Inventories	38,120	31,667	35,479	48,264
Total Other Current Assets	45,710	44,753	44,968	45,281
Total Current Assets	227,990	194,183	219,444	247,166
Fixed Assets	359,780	361,080	361,680	361,430
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	479,530	480,130	479,880
Short-term Debt	3,400	3,400	3,400	3,400
Current Portion of Long-Term Debt
Total Creditors	163,950	123,244	129,272	142,076
Other Current Liabilities
Total Current Liabilities	167,350	126,644	132,672	145,476
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	15,738	16,684	18,143
Total Liabilities	196,490	153,522	168,045	183,109
Shareholders Equity	509,730	520,191	531,529	543,937
Minority Interests
Total Equity	509,730	520,191	531,529	543,937

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	2.2%	2.2%	6.4%	8.8%
Operating EBITDA Growth	4.1%	1.7%	7.9%	9.0%
Operating EBITDA Margin	23.5%	23.4%	23.7%	23.7%
Net Cash Per Share (Rs)	44.05	36.83	41.44	45.77
BVPS (Rs)	216.91	221.36	226.18	231.46
Gross Interest Cover	43.35	33.29	35.95	39.24
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	12.87	10.04	10.89
Inventory Days	48.81	42.77	39.39	46.13
Accounts Payables Days	179.97	175.99	148.14	149.47
ROIC (%)	31.5%	30.3%	32.6%	35.3%
ROCE (%)	26.3%	26.3%	27.7%	29.3%
Return On Average Assets	14.5%	14.6%	15.8%	16.6%

(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