Hindustan Unilever Limited (HUL) is a leading fast moving consumer goods (FMCG) company headquartered in Mumbai. Set up in 1933, HUL is a subsidiary of Unilever Limited and manufactures goods across the food, personal care and homecare segments.
*Note: Prices that are specified below is based on INR
HUL Historical Share Price (NSE)
HUL Market Capitalisation
HUL’s market capitalisation stands at Rs.2,79,380 crore as of March 2018.
Company’s Wealth and Recent Performance
Q1 FY 2018-19
The key financial highlights of the company’s performance for the Q1 FY 2018-19, ended 30 June 2018 are as follows:
- Profit after tax (PAT) registered a growth of 21% and stood at Rs.1,567 crore.
- The net profit recorded an increase of 19% YoY (year-on-year) and stood at Rs.1,529 crore.
- The Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was up 100 bps.
- EBITDA recorded an increase of 21% and stood at Rs.2,251 crore.
- The domestic consumer growth was at 16% while the underlying volume growth stood at 12%.
- Revenue from operations registered an increase of 2.88% YoY and stood at Rs.9,356 crore as against Rs.9,094 crore in Q1FY18.
- The volume for the quarter rose 12% YoY.
- In this quarter, the company integrated the foods and refreshment divisions that helped in increasing the organizational agility.
- The company’s tea and skin care department registered double-digit growth.
The key financial highlights of the company’s performance for the entire FY 2017-18, ended 31 March 2018 are as follows:
- PAT recorded an increase of 21% and stood at Rs.5,135 crore.
- The net profit registered a growth of 17% and stood at Rs.5,237 crore.
- The company’s consumer growth stood at 12% while the underlying volume growth stood at 6%.
- EBITDA margin improvement stood at 155 Bps.
- The company board proposed a final dividend of Rs.12 per share. The total dividend for the financial year ending 31st March 2018 amounts to Rs.20 per share after including the interim dividend of Rs.8 per share.
The key financial highlights of the company’s performance for the Q4 FY 2017-18, ended 31 March 2018 are as follows:
- The net profit stood at Rs.1,351 crores and recorded an increase by 14%.
- EBITDA recorded an increase of 24% and stood at Rs.2,048 crore.
- PAT registered a growth by 26% and stood at Rs.1,409 crore.
- The domestic consumer growth stood at 16% while the underlying volume growth stood at 11%.
- EBITDA margin was up at 160 bps.
- HUL announced results for Q3 ending December 2017, with EBITDA at Rs.1,236 crore and a 28% rise in profit over the period in question.
- The company reported a 20% rise in sales in the home care segment, boosted by detergent sales.
- Other sectors also saw strong growth, with the personal care segment seeing 17% growth on the back of higher sale volumes in skin care and cosmetics.
- The rise in sales across the Kissan brand pushed growth in the food segment to 18%, while the company also saw increasing sales in the soups vertical.
- The reduction in the GST (Goods and Services Tax) on a number of FMCG categories, which led to a reduction in the price of goods. Since the decrease in price could not be passed on the consumer at the time, the company listed the Rs.119 crore as a liability.
- The company declared standalone Q3 results with profit before tax of Rs.1,685 crore. The company grew significantly during the period when compared to other competitors in the sector.
- The launch of a new range of air purifiers also led to a boost in overall sales and company profits.
- The increase in sales in the refreshments segment was evidenced through double digit growth with regard to tea, as the frozen dessert market also saw a jump in sales.
HUL Stock Trend 2018
- The opening price of the HUL stock at the beginning of January 2018 was Rs.1,367 on NSE. The scrip picked up the pace and increased by around 35 points by the end of the month. By the end of January, the price of the stock stood at Rs.1,400.
- In February, the stock price fell by around 35 points throughout the month. The opening price of the stock by the end of the month was Rs.1,338.
- The scrip decreased marginally in the month of March. By the end of the month, the stock price stood at Rs.1,326.
- In April, the scrip picked up the pace and reached Rs.1,491 towards the end of the month.
- The price of the stock crossed Rs.1,500 in the month of May. The scrip continued to increase throughout the month and stood at Rs.1,595 by the end of May.
- In the month of June, the price of the stock reached around Rs.1,630. The opening price of the stock by the end of June was Rs.1,605.
- The scrip gained strength in July and increased by around 128 points and reached Rs.1,767 by 17 July 2018. By the end of the month, the price of the stock stood at Rs.1,690.
- In the month of August, the scrip increased gradually by around 100 points and reached Rs.1,777.
- The price of the stock in September fell by 100 points. As on 12 September 2018, the scrip stood at Rs.1,599.
HUL Stock Returns in 2016 and 2017
- HUL stocks were priced at Rs.856 as markets opened in January 2016, reaching a high of Rs.868 in trading.
- There was a gradual decline in the price of the stock over the month with HUL trading at close to Rs.795.
- Prices recovered marginally, with the stock trading at close to Rs.830 on 9 February 2016 as markets made gains after a bear run.
- Ebbs in the price were seen throughout the month but there the stock did not see too much of a loss in value, ending February 2016 trading at Rs.852.
- March 2016 saw the stock price remain more or less constant as markets enjoyed a favourable run and the company performed well, with the stock trading at Rs.880 on 22 March 2016.
- The new financial year saw the stock open at Rs.868 on 1 April 2016, with the stock price remaining quite stable.
- A relatively stable run on the bourses led to minimal changes in the stock price, with a dip in price observed on 20 May 2016 as the stock fell to Rs.816.
- Prices rose steadily as the stock climbed to Rs.898 on 9 June 2016 following a surge in investor confidence.
- Favourable market conditions led to the stock climbing to Rs.930 on 12 July 2016 as the company’s performance improved.
- Stock prices in August 2016 were relatively unchanged as stable markets kept HUL stocks from fluctuating too greatly, with the stock trading at Rs.924 on 31 August 2016.
- Minor dips in stock price led to HUL opening September 2016 priced at Rs.918 but the stock suffered some losses over the month to end at Rs.877.
- The dip in form continued, with the stock falling to Rs.850 on 18 October 2016 before plunging further to Rs.845 as the month ended on 31 October 2016.
- Poor results and markets led to HUL’s stock price dropping to Rs.820 on 11 November 2016.
- Prices began to recover marginally as the month ended, with the stock trading at Rs.835 on 30 November 2016.
- The end of the year saw prices continue to plunge as HUL traded at Rs.797 on 22 December 2016 and ended the year at Rs.819 on 30 December 2016.
- 2017 began with HUL trading at Rs.826 at opening, with the price remaining stable for most of the month due to balanced trading in the company.
- Favourable market conditions led to the price appreciating over the course of the month, with the stock trading at Rs.855 on 1 February 2017 due to a buoyant equity market.
- Prices fluctuated somewhat over the course of the month but HUL stayed on course, with the stock ending the month at over Rs.866.
- There was a steep appreciation in the value of the stock in March 2017 with the stock price reaching Rs.913 at opening on 15 March 2017.
- A minor dip in performance following market trends was observed for the rest of the month.
- April saw the stock priced at Rs.910, with a steady appreciation observed.
- The price remained steady for a while before a jump to Rs.1,100 was recorded on 6 June 2017.
- The stock price remained steady, buoyed by a bullish market and good quarterly results.
- August 2017 saw prices climb further still, with the stock trading at Rs.1,197 on 22 August 2017.
- Good returns and increasing profit margins led to a surge in investor confidence in the company as the stock rose to 1,280 on 18 October 2017.
- Ebbs and flows in market performance led to fluctuations in the stock price as the year came to a close, with HUL reaching Rs.1,300 on 15 November before climbing to Rs.1,336 on 22 December.
- A positive outlook combined with steady sales led to the stock closing the year at Rs.1,357.
Should You Invest in HUL?
- HUL stock prices have progressively increased over the past few years, backed by a steady rise in market share in spite of new competition. The company’s ability to grow and expand market share are among the key reasons posited behind it’s stable stock price.
- The company’s profits have also seen a healthy increase, with growth in most segments in double digits.
- While new players are constantly emerging in the personal care sector, HUL’s market share has not suffered too adversely. While there are minor erosions in the company’s footprint in a few verticals, there has been exponential growth in the food and refreshment segment, where HUL is a market leader.
- The company’s recent product launches and acquisitions enabled it to gain a wider foothold in urban markets, with the Ayurvedic “Ayush” range of products being the most prominent.
- The company is projected to continue at a steady pace of growth if it keeps up with the pace of innovation and quality it has maintained thus far.
- While the company has been performing well in comparison to other players in the market, it is advisable to do additional research and analysis prior to purchasing stock in the company.
HUL is one of the leading Fast Moving Consumer Good (FMCG) companies in India. HUL in its present avatar was established in 1956 through the merger of three allied companies. The company has interests in various sectors such as food, personal care, cosmetics, home care and refreshments.
With a presence in over 20 segments, the company is a market leader in consumer products, though it has seen a slight eroding of its market share due to the rise of home-grown competitors such as Patanjali.
Mr. Harish Manwani- Non-Executive Chairman
Mr. Manwani has served as the Non-Executive Chairman of HUL since July 2005.
Mr. Manwani has been associated with the Unilever family since 1976 and assumed the role of Director for the Personal Products arm in 1995. He was appointed President for the Home and Personal Care division in Latin America in 2001 while also serving as Chairman of the company’s Latin America Advisory Council.
He served as the President- Asia and Africa in 2005 and also handled Central and Eastern Europe. In 2011, he was appointed Chief Operating Officer for Unilever and served in this capacity till December 2014.
Mr. Manwani graduated from Mumbai University with Honours and also holds a Master’s in Management Studies. He has been the recipient of a number of awards and was conferred the Public Service Medal by the Singapore Government.
Mr. Sanjiv Mehta- CEO and Managing Director
Mr. Mehta was appointed the CEO and Managing Director in October 2013. He is also the Executive Vice President of Unilever’s South Asia business. A Bachelor’s in Commerce and a Chartered Accountant, he has also completed a degree in business management from Harvard Business School.
Associated with Unilever in various capacities over the past 25 years, he has served as Chairman of Unilever in Philippines, Bangladesh as well as North Africa and the Middle East over the course of his career.
Hindustan Unilever Limited (HUL) was established in the year 1933, but its antecedents date back to 1888, when the company began supplying to India. Unilever set up Hindustan Vanaspati Manufacturing Company in 1931, Lever Brothers in 1933 and United Traders Limited in 1935. The three merged to form what is known as HUL in 1956 and the company has moved from strength to strength since then.
HUL manufactures some of the most iconic global brands in the personal care and FMCG market, such as Brooke Bond, Lipton Tea as well as soap brands like Lux, Lifebuoy and Pears.
The company launched both personal care as well as consumer goods in the market, with the famous Dalda ghee launched in 1937.
With the advent of the LPG regime, Indian markets were opened to global players, which resulted in HUL seeking to consolidate its position in the country. It entered into a 50:50 partnership with Lakme in 1996 and set up Lakme Unilever Limited, through which it tapped into the vast cosmetics segment.
A series of acquisitions followed, as HUL began a slew of product launches such as its foray into Ayurveda with the Ayush brand of products.
The company is also looking at sustainability and launched the Compass in 2009, which aims to reduce its carbon footprint while expanding business globally.
HUL Listing and Indices
HUL is listed on both the major stock indices in the country, namely the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). In addition to the two indices, the company is also listed on a number of other market indices such as the Nifty 50, Nifty MNC, S&P BSE 100 among a host of others.
The company’s head office is located in Mumbai, Maharashtra. The erstwhile head office was Lever House in Backbay Reclamation. In 2005, the company moved to the following address:
B. D. Sawant Marg,
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