Professional Documents
Culture Documents
Hindustan Unilever
Hindustan Unilever
Introduction
In fact, the company claims that more than 9 out of 10 households in India use
one or more brands of HUL. It means there are high chances that you are also
Well, some of the popular brands of HUL include Surf excel, Rin, Wheel, Sunlight,
Vim, Pureit, Lux, Lifebuoy, Dove, Fair & Lovely, Pond’s, Vaseline, Clinic Plus,
Sunsilk, Indulekha, Lakmé, Pepsodent, Closeup, Axe, Brooke Bond, Lipton, BRU,
Kwality Wall’s, Knorr and Kissan. Effective 1st April 2020, HUL has also acquired
So there are 2 pieces of information you need before you invest your money in a
strong or not. Obviously, you don’t want to invest in weak companies. And 2nd
information is to identify the valuation of the company. Bec no matter how good
Qualitative Analysis:
1) HUL is the biggest FMCG company in India with a market cap of ~5 lakh Crore.
2) It was established in 1933 which makes it a 87 year old company. So it is one
3) HUL CEO and MD is Mr Sanjiv Mehta. He has been associated with Unilever
since 26 years.
4) It is a subsidiary of Unilever group from the UK that has ~61% stake in the
HUL.
Product Categories
Rexona, Sunsilk, Tresme, Vaseline, Closeup, Fair & Lovely, Lakme, Pears,
Toni&Guy, Brylcreem, clinic plus, Elle18, Hamam, Indulekha, Ayush Lever, Liril,
Rexon
Bond Red lebel, 3 roses, Tazza, Taj Mahal, Kissan, Kwality Walls
Competitive Advantage
preference
3) Brand leadership: Brands like Lux, Dove, Vaseline, Clinic Plus, Surf excel,
the mind recall of every consumer in India. They are also effectively utilizing the
embedding the technology across the end to end value chain to build a “future-
fit” business
HUL vs Competitors:
Future Scope
people in small towns and villages are still using low quality unbranded
products. There is huge scope for HUL to increase its presence in rural areas in
India.
conditioner, liquid soap, and the likes, all to build markets of the future.
lives.
and Boost which help HUL strengthen its foothold in Nutrition and Health drink
category which is a fast growth category in India. HUL has launched new
products in hygiene category as well. Some of the new products are Lifebuoy
'germ kill spray', Domex disinfectant sprays, germ removal wipes, Lifebuoy cloth
portfolio to help people achieve healthier diet, it has planned to reduce the
Quantitative Analysis:
1) Growth Ratio:
A consistent increase in both revenue and profits for the last 10 years.
2) Profitability
All the ratios: operating profits, ROE, and ROCE are excellent.
3) Leverage Ratio
It suggests the company is debt-free!
Valuations:
movement:
Current PE ratio: 68
Since the current PE of HUL is close to its 1-3 year median PE, it is trading at fair
valuations.
Valuations Score: 7/10
Based on your analysis, you should buy and hold the share for a long
term horizon