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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