Others | FMCG
Nov 28,2018
Hindustan Unilever
BUY
CMP
`1,731
Hindustan Unilever Limited (HUL) is engaged in fast-moving consumer goods
Stock Info
business comprising home and personal care, foods and refreshments. HUL will
Sector
FMCG
be focusing on improving its direct coverage reach.
Market Cap (` cr)
3,74,657
HUL has been steady in its growth, both on top-line and bottom-line front. In the
Beta
1.0
latest quarter, 2QFY19 also it generated net sales which was 11.5% higher yoy.
52 Week High / Low
1870/1281
This was aided by spurt in volumes witnessed across all its segments.
Avg. Daily Volume
95,820
Simultaneous to the sales growth, EBITDA and Pat margins also improved, which
Face Value (`)
1
was further supported by the slow movement in expenses. The company has a
BSE Sensex
35,717
debt-free balance sheet and generated operating cash flow of `6,064cr as of
Nifty
10,729
FY2018 from `5,185cr in FY17. We believe that the company generates
Reuters Code
HLL.BO
sufficient cash flows to cover for R&D and technology up-gradation related
Bloomberg Code
HUVR IN
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
Promoters
67.2
many Indias) strategy which can help the company to boost its sales growth. HUL
MF / Banks / Indian Fls
7.4
continues to reflect the company's market leadership across segments with strong
FII / NRIs / OCBs
12.0
brand presence and high operating efficiency which will demonstrate healthy
Indian Public / Others
13.4
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%).
Abs. (%)
3m
1yr
3yr
Hence Buy.
Sensex
(8.2)
6.2
36.7
HUL
(2.3)
36.5
111.7
Jaikishan Parmar
022 - 3935 7600 Ext: 6810
[email protected]
Please refer to important disclosures at the end of this report
1
Hindustan Unilever | FMCG
Research Team Tel: 022 - 39357600
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
Angel Broking 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 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 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 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 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 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)
2