HINDUSTAN UNILEVER LTD. Valuation

HINDUNILVR · Fast Moving Consumer Goods · Current price ₹2,143.8

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DocStoX fair value
₹1,135
low confidence
Current price
₹2,144
Upside
-47.0%
P/E ratio
33.5x
P/B ratio
10.3x
Verdict
Avoid
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Is HINDUSTAN UNILEVER LTD. undervalued?

DocStoX estimates the fair value of HINDUSTAN UNILEVER LTD. at ₹1,135 per share, versus the current market price of ₹2,144. That puts the stock about -47.0% above our fair-value estimate, which we read as "Avoid". Our confidence in this estimate is low.

How this fair value is calculated

This estimate blends 3 independent methods: Residual income (₹378), Relative P/E (₹2,977), Graham floor (₹546). We weight each by its reliability and skip any method whose inputs look untrustworthy — "no DCF beats a wrong DCF". This is the same deterministic engine that powers DocStoX stock pages; there is no guesswork or AI-generated number here.

Bear, base and bull scenarios

Our scenarios span ₹378 (bear) to ₹1,135 (base) to ₹2,977 (bull). A margin of safety means buying meaningfully below the base case — the wider the gap, the more room for error in the assumptions.

Valuation multiples

HINDUSTAN UNILEVER LTD. trades at a P/E of 33.5x and a P/B of 10.3x, with a dividend yield of 1.9%. Multiples are most useful compared against the company's own history and its sector peers — see the peer comparison for context.

Understand the ratios

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DocStoX estimates are generated by a deterministic valuation engine from reported financials — for informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.