In company profile section we explore more on fundamentally strong and well established companies that are listed on the Indian Stock Exchanges. This Guide book would cover the contents regarding to company’s origin, founders, latest financial reports and several noteworthy reports that would act as an add-on while framing the fundamental analysis of the company.
This week we would be exploring HUL that is an Leader in Indian Consumer Segments.
Company Genesis & Profile:
Brief Company Profile: HUL alias Hindustan Unilever Limited was incorporated in the year 1933 having its headquartered at Andheri (E), Mumbai. HUL’s currently has more than 400 brands in the market and claims to attract maximum consumers via its products like Lakme, Ponds, Dove, Knorr etc. The company has employed over 81,000 staff via direct and indirect employment.
Inception & Founders:
HUL set up its first Indian subsidiary company, Hindustan Vanaspati Manufacturing Company in the year 1931 and Lever Brothers India Limited in the year 1933 and United Traders Limited in the year 1935 these three companies allied to form Hindustan Lever Limited in the year 1956. In the year 2007, the company was reformed as Hindustan Unilever Limited.
Chairman & Directors:
Mr Sanjiv Mehta is the chairman and Managing Director of HUL.
Customer Segment & Area of Operations:
HUL is mainly spread across FMCG leader that has a wide and diversified customer segment across India.
The products are broadly classified across 4 major segments that consist:
Food
Homecare Brands
Personal Care Brands
Water Purifier Brands
While personal care brands are the highest contributor to overall companies revenue.
Some of the well-known brands are described below:
HUL has successfully created its brand value among its more than 700 million customers using its products.
Confidence Booster for Investors:
The following pointers will uplift the confidence of any stock market analyst. As this highlight the favourable business outcomes for HUL.
The ROCE of this company is 196.19%.
The company is debt free almost.
The companies has good Return On Equity at 85.40% considering 5 years.
Company has been maintaining a healthy dividend payout of 82.74%.
Quick Financial Information(Last Updated on 08/08/2018):
Market Cap:
374,492 Cr.
Book Value:
39.75
ROCE:
196 %
Net profit margin (%)
15.16
Stock P/E:
67.41
Return On Equity (%)
71.61
Adjusted EPS (Rs)
24.48
Dividend Yield (%)
1.15
Current Price:
Rs 1,730
Sales Growth (3Yrs):
3.87 %
Face Value:
1
Dividend Yield:
1.16 %
Shareholding pattern:
The table below highlights the approximate shareholding pattern of HUL.
Holder's Name
% Shareholding
Foreign foundation
12.15%
Promoter
67.19%
General Public
11.29%
Financial Organisations
5.39%
Others
2.10%
NBanksMutualFunds
1.88%
Peer Comparison:
The table below highlights the Top 7 companies in the same business, therefore, giving the easy benchmark for comparing HUL with other 6 companies in the same business.
S.No.
Name
Current Price Rs.
Price/Earning Ratio
Market Capitalization Rs.Cr.
Dividend Yield %
Net Profit Qtr Rs.Cr.
Qtr Profit Var %
Sales Qtr Rs.Cr.
Qtr Sales Growth
ROCE %
1
Hind. Unilever
1730.05
67.41
374492.47
1.16
1529
21.56
9487
11.23
196.19
2
Godrej Consumer
1299.6
53.28
88560.47
1.15
405.04
77.45
2476.02
13.72
18.44
3
Dabur India
443.2
55.05
78280.84
1.69
330
19.24
2080.68
16.24
55.17
4
Marico
361.7
54.83
46690.57
1.18
260.13
10.26
2026.79
20.54
48.47
5
Colgate-Palm.
1144.95
43.72
31141
2.1
189.51
22.46
1041.3
6.46
89.26
6
P & G Hygiene
10793.9
85.86
35037.79
3.6
83.24
-16.45
568.89
-0.87
70.99
7
Emami
572.8
78.34
26001.41
0.61
26.46
2873.03
614.38
16.17
24.05
Annual & Quarterly Results:
Below is the Quarterly Results of HUL:
June 2018
Mar 2018
Dec 2017
Sep 2017
June 2017
Mar 2017
Sales
9,487
9,097
8,590
8,309
8,529
8,213
Expenses
7,295
7,113
6,937
6,637
6,680
6,567
Operating Profit
2,192
1,984
1,653
1,672
1,849
1,646
OPM %
23.11%
21.81%
19.24%
20.12%
21.68%
20.04%
Other Income
135
100
158
250
117
87
Depreciation
127
128
121
115
114
108
Interest
7
4
5
6
6
6
Profit before tax
2,193
1,952
1,685
1,801
1,846
1,619
Tax
664
601
359
525
563
436
Net Profit
1,529
1,351
1,326
1,276
1,283
1,183
Annual Results of HUL:
Mar 2018
Mar 2017
Mar 2016
Mar 2015
Mar 2014
Mar 2013
Sales
34,525
31,890
31,061
30,806
28,019
25,810
Expenses
27,367
25,900
25,453
25,611
23,554
21,846
Operating Profit
7,158
5,990
5,608
5,194
4,465
3,964
OPM %
20.73%
18.78%
18.05%
16.86%
15.94%
15.36%
Other Income
625
824
674
1,297
860
1,255
Interest
20
22
15
17
36
25
Depreciation
478
396
321
287
261
236
Profit before tax
7,285
6,396
5,946
6,187
5,028
4,958
Tax
2,048
1,906
1,809
1,872
1,161
1,161
Net Profit
5,237
4,490
4,137
4,315
3,867
3,797
Cash Flow statement:
Readers will find the cash flow statements of HUL of past 6 years.
Mar 2018
Mar 2017
Mar 2016
Mar 2015
Mar 2014
Mar 2013
Cash from Operating Activity
5,916
4,953
3,974
3,272
3,724
3,530
Cash from Investing Activity
-1,264
-752
-51
280
-513
34
Cash from Financing Activity
-4,651
-4,264
-4,008
-3,450
-2,917
-4,160
Net Cash Flow
1
-63
-85
101
294
-597
Balance Sheet:
The below table highlights the balance sheet position of HUL for the past 6 years.
Mar 2018
Mar 2017
Mar 2016
Mar 2015
Mar 2014
Mar 2013
Share Capital
216
216
216
216
216
216
Reserves
6,859
6,274
6,063
3,508
3,060
2,457
Borrowings
0
0
0
0
0
0
Other Liabilities
10,472
8,673
7,983
10,181
9,956
9,050
Total Liabilities
17,547
15,163
14,262
13,905
13,233
11,723
Fixed Assets
4,142
4,024
2,914
2,458
2,422
2,293
CWIP
430
203
386
479
320
216
Investments
3,111
3,779
2,780
3,278
3,094
2,331
Other Assets
9,864
7,157
8,182
7,690
7,397
6,884
Total Assets
17,547
15,163
14,262
13,905
13,233
11,723
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(Note: The above list is for information purpose only. Avoid trading and investing based on the information given above. Before investing in stocks do due diligence).
The author has over 9 years+ experience in media, traditional and digital marketing. Chirag currently leads the Marketing function at Samco Group and overlook all marketing and communications for the Samco Group.
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