Others | FMCG
Nov 28,2018
Hindustan Unilever
Hindustan Unilever Limited (HUL) is engaged in fast-moving consumer goods
Stock Info
business comprising home and personal care, foods and refreshments. HUL will
be focusing on improving its direct coverage reach.
Market Cap (` cr)
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
BSE Sensex
debt-free balance sheet and generated operating cash flow of `6,064cr as of
FY2018 from `5,185cr in FY17. We believe that the company generates
Reuters Code
sufficient cash flows to cover for R&D and technology up-gradation related
Bloomberg Code
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
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%).
Abs. (%)
Hence Buy.
Jaikishan Parmar
022 - 3935 7600 Ext: 6810
[email protected]
Please refer to important disclosures at the end of this report
Hindustan Unilever | FMCG
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Disclosure of Interest Statement
Hindustan Unilever
1. Financial interest of research analyst or Angel or his Associate or his relative
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives
3. Served as an officer, director or employee of the company covered under Research
4. Broking relationship with company covered under Research
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)