Hindustan Unilever has reached Rs. 6 trillion market capitalisation after the company’s shares surged more than 20% from the previous FY. This makes Hindustan Unilever Ltd the fifth Indian enterprise to achieve this feat.
Let’s Take a Closer Look!
On 20 August 2021, HUL’s shares reached Rs. 2,628.85 on the BSE, an all-time high. In addition, the shares closed at Rs. 2,617, a surge of 5.4% from its preceding close alongside an Rs. 6.15 trillion market capitalisation.
Moreover, the stocks were trading higher for the 7th consecutive session. They also gained more than 10% during this period.
Here’s a rundown of the company’s performance as per its reported June quarter earnings:
- Nutritionand Hygiene portfolio underwent a growth of 7% YoY.
- 9% growth in its volume.
- Overall sales went up by 13%.
- Market gain across 3 segments, which includes HUL’s premium products.
- E-commerce business has doubled.
- 10% of Hindustan Unilever’s business is now conducted on digital platforms.
- Its topline experienced a marginal erosion of -1.8% QoQ due to lockdown; however, this figure improved and reached 12.8% YoY.
- The company’s product mix deteriorated, leading to higher costs. As a result, the company’s Ebitda margin shrank to 23.9%.
- The current Ebitda margin is expected to sustain in FY22.
- Its profit after tax decreased to 6.7% QoQ.
Now, let’s skim through HUL’s financial summary for the 3 months ended 30 June 2021.
- Revenue increased by 14% and touched Rs. 121.94 billion
- Net income rose by 10%, reaching Rs. 20.97 billion
- Beautyand Personal Care segment experienced an increase of 13% and reached Rs. 45.85 billion
- The segment of Homecarewent up by 12% to hit Rs. 37.97 billion
Hindustan Unilever Ltd hit a market capitalisation of Rs. 6 trillion as its scrip reached an all-time high. As a result, it joined the ranks of Tata Consultancy Services Ltd, Infosys, Reliance Industries, and HDFC Bank to achieve this milestone.
The company expects its near-term demand to be challenging, owing to reduced consumer mobility. That said, it foresees rural demand to be higher, alongside a strong rebound of urban demand. Moreover, HUL’s e-commerce efforts are leading to an improved trajectory for its business.
Frequently Asked Questions
- What are the products offered by Hindustan Unilever?
Some of its prominent brands include Pears, Dove, Lifebuoy, Hamam, Surf Excel, Rexona, Wheel, Lux, Comfort, Sunsilk, Vaseline, Close Up, Pepsodent, and Magnum, among numerous others.
- When did Hindustan Unilever start in India?
It began operations in 1933 as Lever Brothers India Ltd.
- Is Hindustan Unilever a listed company?
Yes, the company’s shares trade on the National Stock Exchange as well as Bombay Stock Exchange.