Others | FMCG
Hindustan Unilever Limited (HUL) is engaged in fast-moving consumer goods
business comprising home and personal care, foods and refreshments. HUL will
be focusing on improving its direct coverage reach.
Market Cap (
HUL has been steady in its growth, both on top-line and bottom-line front. In the
latest quarter, 2QFY19 also it generated net sales which was 11.5% higher yoy.
52 Week High / Low
This was aided by spurt in volumes witnessed across all its segments.
Avg. Daily Volume
Simultaneous to the sales growth, EBITDA and Pat margins also improved, which
Face Value (
was further supported by the slow movement in expenses. The company has a
debt-free balance sheet and generated operating cash flow of
6,064cr as of
5,185cr in FY17. We believe that the company generates
sufficient cash flows to cover for R&D and technology up-gradation related
expenses. Further, pricing growth and cost control will drive margin expansion
going forward. The management of HUL is: currently targeting consumers by the
use of digital mapping, reduction in delivery time to retailers from 40 hours to 18
Shareholding Pattern (%)
hours under project Shogun and product development to fit the WIMI (winning in
many Indias) strategy which can help the company to boost its sales growth. HUL
MF / Banks / Indian Fls
continues to reflect the company's market leadership across segments with strong
FII / NRIs / OCBs
brand presence and high operating efficiency which will demonstrate healthy
Indian Public / Others
revenue growth in the medium to long term. The Company is virtually debt free
and has a good return on equity (ROE) of 76% for the last 3 years. The company
has been maintaining a healthy dividend payout of75%-80% (Div yield: 1.2%).
022 - 3935 7600 Ext: 6810
Please refer to important disclosures at the end of this report
Hindustan Unilever | FMCG
Research Team Tel: 022 - 39357600
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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)