InCred Equities - Hindustan Unilever Ltd

	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Revenue (Rsm)	604,690	614,690	654,180	711,590
Operating EBITDA (Rsm)	141,900	142,890	149,220	164,393
Net Profit (Rsm)	100,253	110,660	107,837	118,708
Core EPS (Rs)	42.9	45.8	45.9	50.5
Core EPS Growth	1.4%	6.5%	0.3%	10.1%
FD Core P/E (x)	56.02	50.75	52.08	47.31
DPS (Rs)	39.0	39.0	41.1	45.3
Dividend Yield	1.63%	1.63%	1.72%	1.90%
EV/EBITDA (x)	38.78	38.58	37.19	33.68
P/FCFE (x)	48.03	45.85	94.94	47.07
Net Gearing	(20.3%)	(19.1%)	(11.2%)	(13.4%)
P/BV (x)	11.02	11.43	11.17	10.91
ROE	19.9%	21.5%	21.7%	23.3%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Total Net Revenues	604,690	614,690	654,180	711,590
Gross Profit	311,420	312,930	338,922	370,088
Operating EBITDA	141,900	142,890	149,220	164,393
Depreciation And Amortisation	(10,970)	(12,240)	(11,900)	(12,750)
Operating EBIT	130,930	130,650	137,320	151,643
Financial Income/(Expense)	2,490	3,023	3,779	3,849
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	4,223	5,107	5,618	6,015
Profit Before Tax (pre-EI)	137,643	138,780	146,717	161,508
Exceptional Items	(890)	4,220
Pre-tax Profit	136,753	143,000	146,717	161,508
Taxation	(35,610)	(36,560)	(38,880)	(42,800)
Exceptional Income - post-tax
Profit After Tax	101,143	106,440	107,837	118,708
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax	(890)	4,220
Net Profit	100,253	110,660	107,837	118,708
Recurring Net Profit	100,911	107,519	107,837	118,708
Fully Diluted Recurring Net Profit	100,911	107,519	107,837	118,708

(Rs mn)	Mar-24A	Mar-25A	Mar-26F	Mar-27F
EBITDA	141,900	142,890	149,220	164,393
Cash Flow from Invt. & Assoc.
Change In Working Capital	42,650	12,830	(48,086)	349
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(890)	4,220
Other Operating Cashflow	9,733	11,770	12,947	13,564
Net Interest (Paid)/Received	(3,020)	(3,640)	(3,550)	(3,700)
Tax Paid	(35,610)	(36,560)	(38,880)	(42,800)
Cashflow From Operations	154,763	131,510	71,651	131,807
Capex	(20,850)	(17,930)	(12,500)	(12,500)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments	(16,990)	8,910
Other Investing Cashflow
Cash Flow From Investing	(37,840)	(9,020)	(12,500)	(12,500)
Debt Raised/(repaid)
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(93,980)	(124,530)	(96,686)	(106,433)
Preferred Dividends
Other Financing Cashflow	1,647	1,180
Cash Flow From Financing	(92,333)	(123,350)	(96,686)	(106,433)
Total Cash Generated	24,590	(860)	(37,535)	12,874
Free Cashflow To Equity	116,923	122,490	59,151	119,307
Free Cashflow To Firm	119,943	126,130	62,701	123,007

(Rs mn)	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Total Cash And Equivalents	117,260	109,070	79,085	92,759
Total Debtors	26,900	34,500	35,383	42,346
Inventories	38,120	41,610	40,690	48,120
Total Other Current Assets	45,710	49,440	49,208	49,520
Total Current Assets	227,990	234,620	204,367	232,745
Fixed Assets	359,780	365,470	366,070	365,820
Total Investments	9,830	9,880	9,880	9,880
Intangible Assets	173,160	173,160	173,160	173,160
Total Other Non-Current Assets	(64,540)	(65,830)	(65,830)	(65,830)
Total Non-current Assets	478,230	482,680	483,280	483,030
Short-term Debt	3,400	3,800	3,800	3,800
Current Portion of Long-Term Debt
Total Creditors	163,950	188,700	145,263	158,912
Other Current Liabilities
Total Current Liabilities	167,350	192,500	149,063	162,712
Total Long-term Debt	10,340	11,570	19,120	19,920
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities	10,340	11,570	19,120	19,920
Total Provisions	18,800	21,700	16,783	18,187
Total Liabilities	196,490	225,770	184,966	200,819
Shareholders Equity	509,730	491,530	502,681	514,956
Minority Interests
Total Equity	509,730	491,530	502,681	514,956

	Mar-24A	Mar-25A	Mar-26F	Mar-27F
Revenue Growth	2.2%	1.7%	6.4%	8.8%
Operating EBITDA Growth	4.1%	0.7%	4.4%	10.2%
Operating EBITDA Margin	23.5%	23.2%	22.8%	23.1%
Net Cash Per Share (Rs)	44.05	39.87	23.90	29.38
BVPS (Rs)	216.91	209.16	213.91	219.13
Gross Interest Cover	43.35	35.89	38.68	40.98
Effective Tax Rate	26.0%	25.6%	26.5%	26.5%
Net Dividend Payout Ratio	90.6%	86.1%	89.7%	89.7%
Accounts Receivables Days	16.37	18.23	19.50	19.93
Inventory Days	48.81	48.22	47.64	47.46
Accounts Payables Days	179.97	213.28	193.33	162.55
ROIC (%)	31.5%	31.9%	30.3%	33.4%
ROCE (%)	26.3%	26.7%	28.0%	29.9%
Return On Average Assets	14.5%	14.5%	14.8%	16.4%

(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