Hindustan Unilever Ltd

About

Hindustan Unilever is in the FMCG business comprising primarily of Home Care, Beauty & Personal Care and Foods & Refreshment segments. The Company has manufacturing facilities across the country and sells primarily in India.[1]

Key Points

Beauty & Personal Care Segment (42% of revenues)[1]
In this segment, the company has a wide-spread portfolio of more than 900 SKUs spread across one or more of categories which are made for 14 consumer clusters identified in India.[2] The company earns ~29% margins from this segment which is the most among its divisions.[1]

Brands under segment :-
Skin Cleansing - Dove, Lifebuoy, LUX, Pears, Liril, Hamam, Lever Ayush
Oral Care - Pepsodent, Closeup, Lever Ayush
Hair Care - Tresemme, Dove, Indulekha, Lever Ayush
Skin Care - Glow & Lovely, Pond's, Vaseline, Lakme, Lever Ayush.
Color Cosmetics - Lakme[3][4]

See full details
  • Market Cap 622,536 Cr.
  • Current Price 2,650
  • High / Low 2,859 / 2,043
  • Stock P/E 75.0
  • Book Value 203
  • Dividend Yield 1.17 %
  • ROCE 39.2 %
  • ROE 29.2 %
  • Face Value 1.00

Pros

  • Company is almost debt free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 48.81%
  • Company has been maintaining a healthy dividend payout of 92.52%

Cons

  • Stock is trading at 13.06 times its book value
  • The company has delivered a poor sales growth of 7.88% over past five years.
  • Promoter holding has decreased over last 3 years: -5.29%
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
9,490 9,841 10,201 10,364 10,105 10,103 9,211 10,731 11,683 12,181 12,433 12,194
7,416 7,748 7,807 7,640 7,597 7,574 7,119 8,036 8,758 9,218 9,391 9,273
Operating Profit 2,074 2,093 2,394 2,724 2,508 2,529 2,092 2,695 2,925 2,963 3,042 2,921
OPM % 22% 21% 23% 26% 25% 25% 23% 25% 25% 24% 24% 24%
Other Income 186 15 49 152 70 5 205 35 10 3 123 39
Interest 10 9 7 27 34 27 30 31 31 44 11 13
Depreciation 140 143 144 229 254 248 271 257 265 286 266 260
Profit before tax 2,110 1,956 2,292 2,620 2,290 2,259 1,996 2,442 2,639 2,636 2,888 2,687
Tax % 30% 26% 31% 31% 21% 28% 24% 22% 25% 26% 24% 22%
Net Profit 1,478 1,440 1,571 1,792 1,814 1,627 1,515 1,898 1,974 1,937 2,186 2,097
EPS in Rs 6.83 6.65 7.26 8.28 8.38 7.52 7.00 8.08 8.40 8.24 9.30 8.92

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
17,738 20,023 23,436 27,004 29,234 31,972 32,186 33,162 35,545 39,310 39,783 47,028 48,491
15,459 17,305 19,936 22,784 24,475 26,560 26,276 26,834 28,046 30,430 29,930 35,403 36,640
Operating Profit 2,279 2,717 3,500 4,220 4,759 5,412 5,910 6,328 7,499 8,880 9,853 11,625 11,851
OPM % 13% 14% 15% 16% 16% 17% 18% 19% 21% 23% 25% 25% 24%
Other Income 715 470 357 1,123 792 1,247 486 606 353 322 432 171 175
Interest 7 1 2 26 41 18 17 35 26 33 118 117 99
Depreciation 192 229 234 251 296 322 353 432 520 565 1,002 1,074 1,077
Profit before tax 2,794 2,957 3,622 5,066 5,215 6,320 6,026 6,467 7,306 8,604 9,165 10,605 10,850
Tax % 23% 22% 23% 24% 24% 31% 31% 31% 28% 30% 26% 25%
Net Profit 2,157 2,296 2,791 3,829 3,946 4,363 4,151 4,476 5,214 6,054 6,748 7,995 8,194
EPS in Rs 9.89 10.63 12.91 17.71 18.24 20.17 19.18 20.68 24.09 27.97 31.17 34.03 34.86
Dividend Payout % 66% 61% 58% 104% 71% 74% 83% 82% 83% 78% 80% 119%
Compounded Sales Growth
10 Years:9%
5 Years:8%
3 Years:10%
TTM:21%
Compounded Profit Growth
10 Years:15%
5 Years:14%
3 Years:16%
TTM:19%
Stock Price CAGR
10 Years:23%
5 Years:25%
3 Years:19%
1 Year:23%
Return on Equity
10 Years:63%
5 Years:54%
3 Years:49%
Last Year:29%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
218 216 216 216 216 216 216 216 216 216 216 235
Reserves 2,451 2,519 3,465 2,649 3,321 3,811 6,357 6,528 7,065 7,651 8,013 47,439
Borrowings 11 0 0 25 46 43 177 277 0 99 0 0
6,826 7,613 7,726 9,202 10,171 10,359 8,043 8,685 10,581 10,663 11,924 21,066
Total Liabilities 9,506 10,348 11,407 12,092 13,754 14,430 14,793 15,706 17,862 18,629 20,153 68,740
2,214 2,223 2,263 2,431 2,746 2,821 3,258 4,419 4,528 4,715 5,479 51,443
CWIP 280 289 228 222 373 516 408 229 461 406 597 745
Investments 1,224 1,188 2,322 2,252 2,838 3,025 2,592 3,794 2,873 2,716 1,255 2,709
5,787 6,647 6,595 7,186 7,797 8,067 8,535 7,264 10,000 10,792 12,822 13,843
Total Assets 9,506 10,348 11,407 12,092 13,754 14,430 14,793 15,706 17,862 18,629 20,153 68,740

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
3,480 1,924 2,932 3,605 3,818 3,292 4,171 5,185 6,059 5,800 7,623 9,163
-1,144 -327 -514 63 -475 138 -282 -1,173 -1,063 -438 1,791 -1,228
-2,188 -2,283 -1,726 -4,147 -2,960 -3,462 -3,864 -4,214 -4,975 -5,390 -6,819 -9,309
Net Cash Flow 148 -687 692 -480 383 -33 25 -202 21 -28 2,595 -1,374

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 14 18 13 13 13 12 14 12 13 17 11 14
Inventory Days 106 124 94 83 86 77 75 67 65 59 65 66
Days Payable 210 170 140 132 144 136 147 158 181 165 174 161
Cash Conversion Cycle -90 -29 -34 -35 -46 -48 -58 -78 -103 -89 -98 -81
Working Capital Days -68 -45 -42 -49 -54 -52 -24 -32 -37 -29 -31 -32
ROCE % 103% 99% 106% 131% 148% 140% 112% 91% 103% 116% 117% 39%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
67.19 67.19 67.18 67.18 67.18 67.18 61.90 61.90 61.90 61.90 61.90 61.90
11.96 11.83 12.06 12.40 12.32 12.10 14.81 14.54 14.92 14.95 15.11 15.45
7.44 7.03 6.93 6.67 6.68 6.67 8.34 10.82 10.72 10.68 10.75 10.48
13.41 13.95 13.82 13.74 13.82 14.05 14.95 12.74 12.46 12.47 12.24 12.17

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