Please refer to important disclosures at the end of this report
Hindustan Unilever Limited (HUL) is engaged in fast-moving consumer goods
business comprising home and personal care, foods and refreshments. Market
growth has stabilized post demonetisation, however rural and wholesale sales
continue to remain under pressure; HUL will be focusing on improving its direct
coverage reach. In FY18, HUL will introduce Tresemme Botonique and Clinic
Plus+ Aurveda Care shampoos in natural care portfolio, it will also launch Citra
hair oil. HUL expects that there will be volume recovery and healthy EBITDA
margin expansion in years to come. Going forward, it is expected that with the
gradual pick-up in rural demand, benefits of GST and direct distribution and
continued innovation will drive strong revenue growth for HUL. Further, pricing
growth and cost control will drive margin expansion going forward. The
company's cash flows from operations have been reporting consistently above
`3500cr from FY13 to FY16 which are sufficient to fund its capital expenditure
requirements. HUL continues to reflect the company's market leadership across
segments with strong brand presence and high operating efficiency which will
demonstrate healthy revenue growth in the medium to long term. The Company
is virtually debt free and has a good return on equity (ROE) of 110.25% for the
last 3 years. The company has been maintaining a healthy dividend payout of
77.61% (Div yield: 1.6%). Hence Buy.
CMP `1,020
52 Week High / Low
Avg. Daily Volume
Market Cap (` cr)
BSE Sensex
Face Value (`)
Reuters Code
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Hindustan Unilever
Others | FMCG
May 24, 2017
Hindustan Unilever | FMCG
May 24, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Disclosure of Interest Statement Hindustan Unilever
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)