Hindustan Unilever company analysis


 Industry Profile : Personal Care and consumer staples is the sector which hardly get affect by any crisis. because you cant stop using tooth pest, Soap. life span of the products also high. shelf life is also small. Investors see this companies as secure place in crisis as maybe consumers may change habits about other things but its difficult about this things. This is perfect sector for investor seeking steady growth, dividend and low volatility. As 70% of Gross National Product is consumer spending and consumer staples sector is important part of it, we cant ignore it. plus this sector is hardly any cyclical. means even if your income is changed negatively, you cant stop using Soap. demand for soap, tobacco, tooth pest, Dish wash will not change drastically and that is like double edge sward for the sector. you can not see growth like Financials or automobile companies but you can hardly see them telling you that our revenue is also down.

Their profit per item is also small but when the volume is high that factor is cover. thats why for this sector Same Store Sales growth and volume growth is more important then Margin.

Company Profile :  The company is market leader in Indian Consumer Staples and Personal Care. It operates in 20 categories from soaps, detergent, shampoo, ice-cream, instant coffee, toilet cleaner etc. Product portfolio of the company is large including some well-known brands including Domex, Bru Coffee, Vim Dishwash, Axe Deodorant.

Shareholding Pattern : Parent Unilever Holding 67%. Different mutual funds, Bank, Financial Institution, insurance company holding 5.66% out of which 1.7% is held with LIC. Other foreign Investors holding 13.25%. nearly 14% is with public.

Financials and Ratio :

 2010-112011-122012-132013-142014-152015-162016-17
Revenue cr Rs20008.3922394.6826417.11286403142432487.8032416
Net profit2305.9926.913796.63867.494315.264082.374490
NPM11.6812.1614.7013.801412.7614.07
EPS (Rs)10.5812.4517.5517.8719.9418.8620.74
Book value (Rs)12.3216.2512.3615.1517.2117.0430.05
Dividend payout %61.1760.22105.3572.6975.2084.8079.53
Dividend per share Rs6.507.5018.5013151617
ROE86.7276.62142.01118.04115.87110.7369.18
ROCE65.0959.6898.448888.9581.1659.47
ROA22.6924.5632.9729.7531.6528.8130.43
Debt to equity0000000
Asset turnover %201.82194.19224.19215.55225.94225.78216.18

Future Prospectus :  Having parentage like Unilever where even Warren Buffett want to invest, support company. The brand’s company holding in India are large like Lifebuoy, Brook Bond. Though Patanjali is giving them competition but still it is well known company with good reputation and ratios. If available at good price, definitely it’s a Buy.

 

  • 0

    Overall Score

  • Reader Rating: 0 Votes

Share

About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter