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Today's prices ask more of Hindustan Unilever than of Sun Pharma.
At current prices, buyers of Hindustan Unilever are assuming about 8% growth against 3% in its own record; for Sun Pharma it is 7% against 16%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on discounted cash flow.
- Size: the two are worth roughly the same on the stock market.
- Record: Sun Pharma has grown revenue faster: Hindustan Unilever compounded at about 7% a year (FY2018–FY2026) and Sun Pharma at about 10% (FY2018–FY2026).
- What to watch: volume growth at Hindustan Unilever; specialty growth at Sun Pharma.
| Hindustan Unilever | Sun Pharma | |
|---|---|---|
| Price | ₹1,993 | ₹1,880 |
| Market cap | ₹4.68L Cr | ₹4.51L Cr |
| P/E | 31.1 | 41.1 |
| P/B | 9.61 | 5.40 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Discounted cash flow | Discounted cash flow |
01Two businesses
The brands in almost every Indian home
Hindustan Unilever is India's largest fast-moving consumer goods company and is majority-owned by Unilever. Its products — Surf Excel, Rin, Lux, Dove, Lifebuoy, Pond's, Brooke Bond, Kissan and, since its 2020 merger with GSK Consumer Healthcare, Horlicks and Boost — reach most Indian households through millions of shops.
From generics to specialty medicines
Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India. It sells generics in the US, emerging markets and Europe, and owns Taro Pharmaceutical, a dermatology-focused generics maker it took fully private in 2024.
02The records side by side
Sun Pharma has grown revenue faster: Hindustan Unilever compounded at about 7% a year (FY2018–FY2026) and Sun Pharma at about 10% (FY2018–FY2026). By revenue the two are of broadly similar size. Hindustan Unilever kept 23.4% of revenue as net profit in FY2026; Sun Pharma kept 19.7% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Hindustan Unilever · Sun Pharma.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Volume growthPrice increases can lift revenue for a while, but lasting value comes from selling more packs. Rural demand is the swing factor.
- Commodity costsPalm oil, crude derivatives and tea flow straight into costs; HUL's pricing power decides how much it can pass on.
- Specialty growthThe specialty portfolio is the main reason Sun earns a higher multiple than most Indian pharma companies. Its growth rate drives the valuation.
- The India businessBranded prescriptions in India are steady, cash-rich and grow with the domestic market.
05What could go wrong
- The multiple itselfIf growth stays in low single digits, the market may stop paying a premium P/E.
- Royalty increasesA higher royalty to Unilever moves value from minority shareholders to the parent.
- US FDA complianceWarning letters or import alerts at a manufacturing site can block US sales from that plant for years.
- Trial and patent riskA failed trial or an early generic challenge can wipe out expected specialty revenue.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Hindustan Unilever or Sun Pharma better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Hindustan Unilever trades at 31.1 times earnings and 9.61 times book value, and Sun Pharma at 41.1 times earnings and 5.40 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Hindustan Unilever and Sun Pharma?
Hindustan Unilever is India's largest fast-moving consumer goods company and is majority-owned by Unilever. Sun Pharmaceutical Industries, founded by Dilip Shanghvi in 1983, is India's largest pharmaceutical company and the leader in branded prescriptions in India.
Are Hindustan Unilever and Sun Pharma valued the same way?
Yes — both on discounted cash flow, so their workings compare like for like.
What does today's price assume for Hindustan Unilever and Sun Pharma?
Worked backwards from the share price, Hindustan Unilever needs about 8% growth and Sun Pharma about 7% growth, against 3% and 16% in their own records.