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Hindustan Unilever Ltd Stock Analysis

Large Cap
Evaluated by 11179 users | BSE: 500696 | NSE: HINDUNILVR |
Household & Personal Products

Hindustan Unilever Ltd. (HUL) is India's largest Fast Moving Consumer Goods Company and its Head Office in Mumbai. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Hindustan Unilever Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 81.68%98.85%111.37%95.65%75.25%62.05%72.04%80.28%84.11%28.84%-
Value Creation Index 8.6910.6312.1010.257.856.307.488.448.902.39-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 23,43627,00429,23431,97232,30333,25235,55039,31139,78347,02947,753
Y-o-Y Gr. Rt.-15.2%8.3%9.4%1%2.9%6.9%10.6%1.2%18.2%-
Adjusted EPS (Rs.) 12.1815.0216.6416.9718.8419.6923.7828.2431.1533.9934.87
Y-o-Y Gr. Rt.-23.3%10.8%2%11%4.5%20.8%18.8%10.3%9.1%-
Book Value per Share (Rs.) 16.8613.0716.1618.4130.2331.0933.5736.3138.03202.85211.82
Adjusted Net Profit 2,6333,2493,6003,6704,0764,2615,1486,1126,7437,9868,193
Net Op. Cash Flow (Rs. Cr.) 2,9323,6053,8183,2924,1715,1856,0595,8007,6239,163-
Debt to Cash Flow from Ops 00.010.010.010.040.0500.0200-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Hindustan Unilever Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.1%7.8%9.8%18.2%
Adjusted EPS 12.1%12.5%12.7%9.1%
Book Value per Share 31.846.382.1433.4
Share Price 19.7% 20.6% 10.9% 6.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 82.0799.27112.4597.0476.963.9973.4180.783.7928.5716.82
Operating Profit Margin (%) 14.9315.6516.2116.9218.6119.0321.122.5924.7724.7224.82
Net Profit Margin (%) 11.2712.0712.3511.5212.6512.8614.5215.5616.9716.9917.16
Debt to Equity 00.010.010.010.030.0400.0100-
Working Capital Days 67616055555457535658-
Cash Conversion Cycle -22-24-27-30-36-44-53-57-60-55-
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 61.90%
Institutions 25.86%
Non-Institutions 12.24%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Hindustan Unilever Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Hindustan Unilever Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Hindustan Unilever Ltd's performance infers:

Hindustan Unilever Ltd earnings have grown by 12.5%, whereas share price has appreciated 20.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Hindustan Unilever Ltd share prices over the last 10 years. Here is what we found out:

Hindustan Unilever Ltd share price has appreciated 22.2% annually over the past ten years.

Hindustan Unilever Ltd. (HUL) is India's largest Fast Moving Consumer Goods Company and its Head Office in Mumbai. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With several brands spanning many distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods,

Hindustan Unilever Ltd. (HUL) is India's largest Fast Moving Consumer Goods Company and its Head Office in Mumbai. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With several brands spanning many distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Glow & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. HUL is a subsidiary of Unilever, one of the world’s leading suppliers of Food, Home Care, Personal Care and Refreshment products. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956.

Business area of the company

Hindustan Unilever Ltd. is an India-based consumer goods company. The Company’s consumer goods business comprises of home and personal care, foods and refreshments. Its segments are Home care, which includes detergent bars, detergent powders, detergent liquids, scourers and water business; Beauty & Personal Care, which includes products in the categories of oral care, skin care, hair care, deodorants, color cosmetics and salon services; Foods & Refreshment, which includes staples, culinary products, tea and coffee and frozen desserts. The Company also provides health food drinks such as Horlicks and Boost.

Brands and products of the company

Foods & Refreshment

  • Boost
  • Cornetto
  • Hellmann’s
  • Horlicks
  • Horlicks Cardia+
  • Horlicks Growth+
  • Horlicks Lite
  • Horlicks Protein+
  • Junior Horlicks
  • Knorr
  • Lipton
  • Magnum
  • Mother's Horlicks
  • Women's Horlicks 
  • Bru
  • Annapurna
  • Brooke Bond 3 Roses
  • Brooke Bond Red Label
  • Brooke Bond Taaza
  • Brooke Bond Taj Mahal
  • Kissan
  • Kwality Wall’s

Home Care

  • Cif
  • Comfort
  • Active Wheel
  • Domex
  • Rin
  • Surf excel
  • Vim
  • Love & Care
  • Sunlight

Beauty & Personal Care

  • Axe
  • Dove
  • Lifebuoy
  • Love Beauty and Planet
  • Lux
  • Pepsodent
  • Pond’s
  • Rexona Deodorant
  • Sunsilk
  • TRESemme
  • Vaseline
  • Aviance
  • Breeze (soap)
  • Citra
  • Clear
  • Close Up
  • Glow & Lovely
  • Lakme
  • Pears
  • TIGI
  • TONI&GUY
  • Brylcreem
  • Clinic Plus
  • Elle 18
  • Glow & Handsome
  • Hamam
  • Indulekha
  • Lever ayush
  • Liril
  • Pure Derm
  • Rexona

Life Essentials

  • Pureit

Achievements/ recognition:

  • Hindustan Unilever Limited (HUL) has emerged as the No. 1 Employer of Choice across all sectors for the 2014 graduating batch of B-School students.
  • Awarded top Indian company in the 'FMCG' sector for the third consecutive year at Dun & Bradstreet-Rolta Corporate Awards, 2009.
  • HUL ranked fourth in the ‘Top Companies for Leaders, 2009' (Asia Pacific region) and 10th place in the global rankings in a survey carried out by Hewitt Associates.
  • Awarded Customer and Brand Loyalty Award by Business India & Business Standard in 2009.
  • Awarded for Best Corporate Social Responsibility Practice at the Social & Corporate Governance Awards 08-09 by BSE, Nasscom Foundation and Times Foundation.
  • Awarded in the Category 'FMCG Manufacturing Supply Chain Excellence' at the Third Express, Logistics & Supply Chain Awards by APL Logistics, Indiatimes, Mindscape, Business India Group in 2009.
  • The company’s Orai unit received the Gold Excellence award and the Khalilabad unit received the Silver Excellence award in the environment category by Greentech Foundation in 2009.
  • HUL's Goa factory won a Gold Trophy at the Greentech Awards in 2009 the manufacturing sector category for their outstanding work in Safety Management.
  • Project Shakti won the Silver Trophy at the EMPI-Indian Express Indian Innovation Awards, 2009.
  • Kwality Wall's Swirl's awarded 'The Franchisor of the year' for the Ice-cream parlour category by Franchise India in 2009.
  • HUL was felicitated for receiving the highest number of patents in the year 2009 at Annual Intellectual Property Awards 2010. The award was instituted by Confederation of Indian Industry (CII) in association with Department of Industrial Policy & Promotion (DIIP) and Intellectual Property India (IPI) in New Delhi.HUL brands have topped Brand Equity's ‘India’s Most Trusted Brands Survey’ rankings for 2010. Six HUL brands (Lux, Lifebuoy, Clinic Plus, Pond's, Fair & Lovely and Pepsodent) featured in the top 10 and eight in the top 20. All together there are 17 HUL brands among the ‘100 most trusted brands’ in the 2010 survey. Additionally, five HUL brands (Fair & Lovely, Lifebuoy, Lux, Pepsodent and Pond’s) featured in the list of ten Hall of Fame brands. This recognition was accorded to brands which consistently ranked high in the survey over the last 10 years since its inception. In 2009, three HUL brands featured in the top ten, and seven in the top twenty.
  • Received CNBC AWAAZ Consumer Awards in six categories for 2010 - Green company of the year, Value for money brand of the year, Ad effectiveness award, Marketer of the year award across all categories, Most preferred personal care company in FMCG category (for the third consecutive year), Most Preferred home care company in FMCG category (for the third consecutive year).
  • HUL received the Award for Excellence in HR in 2010 from Confederation of Indian Industry (CII). This is a rigorous fact-based assessment which is conducted by a team of external assessors. HUL has won this award for the third consecutive year.
  • Five of HUL's leading brands - Lux, Dove, Pears, Clinic Plus and Sunsilk - won the Reader's Digest Trusted Brand 2008 Awards.
  • Four HUL brands featured in the top 10 list of the Economic Times Brand Equity's Most Trusted Brands 2008 survey
  • HUL was awarded the Bombay Chamber Civic Award 2007 in the category of Sustainable Environmental Initiatives.
  • HUL was selected as the top Indian company in the FMCG sector for the Dun & Bradstreet - American Express Corporate Awards 2007.
  • HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India.
  • HUL factory in Khamgaon awarded the CII Sustainability Award 2016.
  • HUL recognised at the Cold Chain Industry Awards 2016.
  • HUL digital campaigns win big at 2016 CMO Asia Awards.

Milestones

  • 1933 -Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17.
  • 1934 -Soap manufacture begins at Sewri factory in October; North West Soap Company's Garden Reach Factory, Kolkata rented and expanded to produce Lever brands.
  • 1935 - United Traders incorporated on May 11 to market Personal Products.
  • 1937 - Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.
  • 1939 - Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand.
  • 1941 - Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales force.
  • 1942 - Unilever takes firm decision to 'train Indians to take over junior and senior management positions instead of Europeans'.
  • 1943 - Personal Products manufacture begins in India at Garden Reach Factory. 1944 - Reorganisation of the three companies with common management but separate marketing operations.
  • 1947 - Pond's Cold Cream launched.
  • 1951 - Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories bought.
  • 1955 - 65% of managers are Indians.
  • 1956 - Three companies merge to form Hindustan Unilever Limited, with 10% Indian equity participation.
  • 1957 - Unilever Special Committee approves research activity by Hindustan Unilever.
  • 1958 - Research Unit starts functioning at Mumbai Factory.
  • 1959 - Surf launched.
  • 1961 - Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians.
  • 1962 - Formal Exports Department starts.
  • 1963 Head Office building at Backbay Reclamation, Mumbai, opened.
  • 1964 - Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched.
  • 1965 - Signal toothpaste launched; Indian shareholding increases to 14%.
  • 1966 - Lever's baby food, more new foods introduced; Nickel catalyst production begins; Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched.
  • 1967 - Hindustan Unilever Research Centre, opens in Mumbai.
  • 1968 - Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals Unit commissioned at Andheri; informal price control on soap begins.
  • 1969 - Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched
  • 1971 - Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan approved; Clinic shampoo launched.
  • 1973 - Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.
  • 1974 - Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed.
  • 1975 - Ten-year modernisation plan for soaps and detergent plants; Jammu project work begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched.
  • 1976 - Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning.
  • 1977 - Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.
  • 1978 - Indian shareholding increases to 34%; Fair & Lovely skin cream launched.
  • 1979 - Sodium Tripolyphospate plant at Haldia commissioned.
  • 1980 - Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in the company comes down to 51%.
  • 1982 - Government allows 51% Unilever shareholding.
  • 1984 - Foods, Animal Feeds businesses transferred to Lipton.
  • 1986 - Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start production.
  • 1988 - Launch of Lipton Taaza tea.
  • 1990 - Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.
  • 1991 - Surf Ultra detergent launched.
  • 1992 - HUL recognised by Government of India as Star Trading House in Exports.
  • 1993 - HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the UB Group.
  • 1994 - HUL forms Unilever Nepal Limited, HUL and US-based Kimberley-Clark Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers and Kotex feminine care products. Factory set up at Pune in 1995; HUL acquires Kwality and Milkfood 100% brandnames and distribution assets. HUL introduces Wall's.
  • 1995 - HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme Lever Ltd.; HUL enters branded staples business with salt; HUL recognised as Super Star Trading House.
  • 1996 - Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke Bond Lipton India Limited, with HUL, with effect from January 1; HUL introduces branded atta; Surf Excel launched.
  • 1997 - Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centres also come up.
  • 1998 - Group company, Pond's India Ltd., merges with HUL with effect from January 1, 1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd.
  • 2000 - Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India.
  • 2002 - HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centres.
  • 2003 - Launch of Hindustan Lever Network; acquisition of the Amalgam Group.
  • 2005 - Launch of 'Pureit' water purifiers.
  • 2006 - Brookefields food operations moved to Mumbai.
  • 2007 - Company name formally changed to Hindustan Unilever Limited after receiving the approval of share holders during the 74th AGM on 18 May 2007 Sales of Brooke Bond and Surf Excel each cross the Rs 1,000 crore mark.
  • 2008 - HUL completes 75 years on 17th October 2008.
  • 2009 - HUL decided to license 'Lakme' and 'Lever Ayush', brands to its subsidiary, Lakme Lever Private Limited, for the Beauty and Wellness services business.
  • 2010 - The company launched Pureit Marvella against Aquaguard for domination in the fast-growing water purifier market in the premium category.
  • 2011 - HUL’s corporate campus in Andheri, Mumbai, received certification of LEED India Gold in ‘New Construction’ category, by Indian Green Building Council (IGBC), Hyderabad, under license from the USGBC (United States Green Building Council).
  • 2011 - HUL and Star Bazaar, of Trent Hypermarket Limited, the retail arm of Tata Group, launched a unique consumer initiative titled ‘India’s Favorites’ to promote the cause of education of underprivileged children.
  • 2011 - The shareholders of the company on July 28, 2011, approved the scheme of arrangement for transfer of certain assets, liabilities and properties of FMCG Exports Business Division of Hindustan Unilever Limited to Unilever India Exports Limited.
  • 2011 - HUL and Bharti Retail’s ‘easyday Market’ and ‘easyday’ stores, launched a joint initiative to promote plastic recycling among consumers in NCR.
  • 2012 - In March, 2012 HUL’s state of the art Learning Centre was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai.
  • 2012 - In April, 2012, the Customer Insight & Innovation Centre (CiiC) was inaugurated at the Hindustan Unilever campus at Andheri, Mumbai.
  • 2013 - HUL completes 80 years of corporate existence in India on October 17th, 2013.
  • 2013 - Unilever announces €50 million investment for Khamgaon plant.
  • 2013 - HUL announces launch of Domex Toilet Academy.
  • 2013 - Unilever launches project sunlight.
  • 2014 - Unilever announced a partnership with Internet.org, a Facebook-led alliance of partners, to understand better how internet access can be increased to reach millions more people across rural India.
  • 2014 - HUL launches Prabhat initiative for community development in villages around its factories.
  • 2014 - HUL enters into partnership with MTV to endorse its brands.
  • 2015 - Hindustan Unilever launched The Unilever Foundry.
  • 2015 - HUL signs an agreement with Mosons Group for acquisition of its flagship 'Indulekha' brand.
  • 2015 - HUL was recognized as the most innovative marketer on mobile, at the Mobile Marketing Association (MMA).
  • 2015 - HUL revives Ayush with e-launch.
  • 2015 - HUL was awarded and honoured ‘Client of the Year’.
  • 2015 - HUL won five awards - one Gold, one Silver, and three Bronze awards.
  • 2015 - HUL launches ‘Swachh Aadat, Swachh Bharat’ programme in India.
  • 2016 - HUL signs agreement with LT Foods for the sale of its Rice.
  • 2016 - HUL retains ‘Client of the Year’ at Effies 2016.
  • 2016 - HUL recognized among Top 10 Best Companies 2016 for Women.
  • 2017 - HUL awarded for Excellence in Water Management.
  • 2017 - HUL wins big at the first-ever Marquee Awards 2017.
  • 2020 - Hindustan Unilever’s Boost, one of India's leading nourishing beverage, has expanded in chocolate flavour, into the Western, Northern and Eastern regions of the country.
  • 2020 - Hindustan Unilever has rebranded skin care brand -- Fair and Lovely as Glow and Lovely.
  • 2020 - Hindustan Unilever has completed the acquisition of intimate hygiene brand Vwash from Glenmark Pharmaceuticals.
  • 2020 - Hindustan Unilever has donated 74,328 RT-PCR COVID-19 testing kits worth Rs 13 crore to help ramp up testing of patients in the country. 
  • 2020 - Hindustan Unilever has collaborated with the United Nations Children's Fund for a mass communication campaign to inform and empower the general public against the COVID-19 pandemic.
  • 2020 - Hindustan Unilever has completed merger of GlaxoSmithKline Consumer Healthcare with itself.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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