InCred Equities - Hindustan Unilever Ltd

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue (Rsm)	614,690	657,526	715,249	780,232
Operating EBITDA (Rsm)	142,890	151,053	166,361	183,724
Net Profit (Rsm)	110,660	109,185	120,125	133,337
Core EPS (Rs)	45.8	46.5	51.1	56.7
Core EPS Growth	6.5%	1.5%	10.0%	11.0%
FD Core P/E (x)	54.80	55.54	50.48	45.48
DPS (Rs)	39.0	41.7	45.8	50.9
Dividend Yield	1.51%	1.61%	1.78%	1.97%
EV/EBITDA (x)	41.71	39.71	35.98	32.46
P/FCFE (x)	49.51	100.12	50.24	43.20
Net Gearing	(19.1%)	(11.2%)	(13.5%)	(17.0%)
P/BV (x)	12.34	12.06	11.77	11.46
ROE	21.5%	22.0%	23.6%	25.5%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Net Revenues	614,690	657,526	715,249	780,232
Gross Profit	312,930	340,655	371,991	407,348
Operating EBITDA	142,890	151,053	166,361	183,724
Depreciation And Amortisation	(12,240)	(11,900)	(12,750)	(12,750)
Operating EBIT	130,650	139,153	153,611	170,974
Financial Income/(Expense)	3,990	4,843	4,945	5,204
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	4,140	4,554	4,879	5,233
Profit Before Tax (pre-EI)	138,780	148,550	163,435	181,411
Exceptional Items	4,220
Pre-tax Profit	143,000	148,550	163,435	181,411
Taxation	(36,560)	(39,366)	(43,310)	(48,074)
Exceptional Income - post-tax
Profit After Tax	106,440	109,185	120,125	133,337
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax	4,220
Net Profit	110,660	109,185	120,125	133,337
Recurring Net Profit	107,519	109,185	120,125	133,337
Fully Diluted Recurring Net Profit	107,519	109,185	120,125	133,337

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
EBITDA	142,890	151,053	166,361	183,724
Cash Flow from Invt. & Assoc.
Change In Working Capital	12,830	(48,013)	332	6,773
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	4,220
Other Operating Cashflow	11,770	12,947	13,524	14,137
Net Interest (Paid)/Received	(3,640)	(3,550)	(3,700)	(3,700)
Tax Paid	(36,560)	(39,366)	(43,310)	(48,074)
Cashflow From Operations	131,510	73,072	133,207	152,860
Capex	(17,930)	(12,500)	(12,500)	(12,500)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments	8,910
Other Investing Cashflow
Cash Flow From Investing	(9,020)	(12,500)	(12,500)	(12,500)
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(124,530)	(97,894)	(107,703)	(119,549)
Preferred Dividends
Other Financing Cashflow	1,180
Cash Flow From Financing	(123,350)	(97,894)	(107,703)	(119,549)
Total Cash Generated	(860)	(37,323)	13,004	20,811
Free Cashflow To Equity	122,490	60,572	120,707	140,360
Free Cashflow To Firm	126,130	64,122	124,407	144,060

(Rs mn)	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Total Cash And Equivalents	109,070	79,297	93,101	114,712
Total Debtors	34,500	35,566	42,566	46,445
Inventories	41,610	40,901	48,371	52,779
Total Other Current Assets	49,440	49,227	49,540	49,892
Total Current Assets	234,620	204,991	233,578	263,828
Fixed Assets	365,470	366,070	365,820	365,570
Total Investments	9,880	9,880	9,880	9,880
Intangible Assets	173,160	173,160	173,160	173,160
Total Other Non-Current Assets	(65,830)	(65,830)	(65,830)	(65,830)
Total Non-current Assets	482,680	483,280	483,030	482,780
Short-term Debt	3,800	3,800	3,800	3,800
Current Portion of Long-Term Debt
Total Creditors	188,700	145,697	159,403	173,233
Other Current Liabilities
Total Current Liabilities	192,500	149,497	163,203	177,033
Total Long-term Debt	11,570	19,120	19,920	20,720
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities	11,570	19,120	19,920	20,720
Total Provisions	21,700	16,834	18,243	19,826
Total Liabilities	225,770	185,451	201,366	217,579
Shareholders Equity	491,530	502,820	515,242	529,029
Minority Interests
Total Equity	491,530	502,820	515,242	529,029

	Mar-25A	Mar-26F	Mar-27F	Mar-28F
Revenue Growth	1.7%	7.0%	8.8%	9.1%
Operating EBITDA Growth	0.7%	5.7%	10.1%	10.4%
Operating EBITDA Margin	23.2%	23.0%	23.3%	23.5%
Net Cash Per Share (Rs)	39.87	23.99	29.52	38.38
BVPS (Rs)	209.16	213.97	219.25	225.12
Gross Interest Cover	35.89	39.20	41.52	46.21
Effective Tax Rate	25.6%	26.5%	26.5%	26.5%
Net Dividend Payout Ratio	86.1%	89.7%	89.7%	89.7%
Accounts Receivables Days	18.23	19.45	19.94	20.82
Inventory Days	48.22	47.52	47.46	49.51
Accounts Payables Days	213.28	192.59	162.21	162.80
ROIC (%)	31.9%	30.7%	33.8%	38.1%
ROCE (%)	26.8%	28.6%	30.5%	32.9%
Return On Average Assets	14.4%	14.8%	16.4%	17.5%

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

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

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Market Data

Source: Bloomberg