Hindustan Unilever Ltd., incorporated in the year 1933, is a Large Cap company (having a market cap of Rs 544768.11 Crore) operating in FMCG sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 12235.00 Crore, up 3.90 % from last quarter Total Income of Rs 11776.00 Crore and up 19.86 % from last year same quarter Total Income of Rs 10208.00 Crore. Company reported net profit after tax of Rs 1938.00 Crore in latest quarter.
Investment Rationale
Axis Securities’ believe near-term margin delivery is likely to be impacted owing to RM inflation and management’s strategy of prioritizing volumes over profitability for a couple quarters the outlook on demand is improving and management is geared to deliver a healthy volume growth alongside share gains. HUL will invest behind its brands, build on capabilities (tech/GTM), maintain competitive spends even as it continues to look at all levels of cost savings, and take judicious price hikes to manage margins in the near term. From a medium-term perspective we believe, HUL has the right growth matrix like a broad-based portfolio across the e-value matrix, continued cost savings agenda, growing traction in GSK-CH business, and execution prowess. Given the volatile mkt outlook and stable and visible earnings growth we do believe HUL could perform over the long term.
Promoter/FII Holdings
Promoters held 61.9 per cent stake in the company as of Dec 30, 2020, while FIIs held 14.9 per cent, DIIs 10.7 per cent and public and others 12.5 per cent.
