Sharescart Research Club logo ×
Screener Research Unlisted Startup Funding New IPO New

Aditya Sharma    

Mumbai, India

I am a MBA students and simultaneously reading on capital market to get some knowledge on fundamental research where I more focus on business model, opportunity size of the industry and their related parameters who help me out to find out great businesses for the investment. Nevertheless, I always look forward to learn about grow further into the same.

Read More..
Contributor since: 2022








Comments: 0 | Likes: 0 | Current Price: ₹ 2370.9

Hindustan Unilever Limited

Hindustan Unilever Limited; A FMCG Giant

About The Company

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.

Journey So Far

A Decade of Transformation


Strength of HUL

Product Portfolio

  • HUL operate in 15 categories
  • Category leadership in >85%of business
  • 50+ purposeful brands
  • 16 brands with ₹10Bn+ Turnover
  • 5 digital-first brands

Leader in most of the categories

#1 in >85% of our business

HUL's Product Mix

From FY12 to Now

FMCG Industry Cliemate

Favourable demographic

>1 Bn Working class population 10 Mn will get added every year


Cities with 1 Mn population to nearly double by 2030

Rising affluance

Fundamental of FMCG remains strong

HUL's Business Model

Product portfolio:

F&R; A Strong Business

Financial Performance - HUL

Profit and Loss

Balance Sheet

Analyst Call

The company has consistently concentrated on expanding within its core portfolio over the last ten years and now enjoys brand leadership over 85% of the market and 16 brands with a Rs 10 bn turnover. All nations and businesses have the highest relative market share in some categories. Future efforts will continue to be directed toward expanding these core brands through continuous product innovation, premiumisation (the shift from mass to premium), exploitation of the wildly successful segment-focused region-focused distribution strategy (Winning in Many Indias), and effective communication.

With a total reach of 9 million retail outlets and a direct reach of +2.5 million outlets, HUL has a robust distribution network. Given the extensive network, the company has been able to manage its operations effectively thanks to a focus on digitising the entire value chain. Their hugely popular B2B Shikhar software, with 1 million stores already using it, has greatly streamlined the value chain between wholesalers, salespeople, and retailers. The general trade will remain the primary channel of distribution in the future, but the emphasis is now shifting from expansion to enhancing the value extraction from the already-existing retail touchpoints. E-commerce and modern trade are two of the company's ongoing efforts to build future distribution channels.

Thoughts on Margin: Unprecedented inflation seen in the last quarter has sequentially abated, with several commodity prices showing a sequential decline; volatility, however, persists. HUL has also been harmed by the INR depreciation because the majority of its products are either imported or denominated in dollars. The correct price-value equation has continued to be the company's major priority. Due to this, they have concentrated on prudent pricing and cost reductions to lessen the effect on operating level in the short term. HUL's operating margins have increased by 1,000 bps over the last ten years, reaching respectable 25% levels. 

Management Outlook:

India's urbanisation rate is still in the low 30s, and as it increases along with the nuclearization of families, trends in spending are also anticipated to rise. A 15% shift toward the wealthy and elite between FY17 and FY22 has greatly increased consumption and is a major factor in premiumization. Given the high volatility that the country is currently experiencing due to external sources, inflation will define demand trends in the near future. The local FMCG business has maintained its headline growth despite high inflation, demonstrating India's adaptability. HUL is still optimistic that volume will increase as commodity inflation slows.


market position across categories in the FMCG industry: HUL is the largest FMCG company in India with market leadership across product segments. The company has 14 brands with over Rs 1,000 crore in annual sales. In terms of market share, its brands hold the top two spots in most categories it has presence in. The product portfolio includes home care (31% revenue contribution in fiscal 2021), beauty and personal care products (40%) and foods and refreshments (29%). The brands of HUL have high visibility and have sustained their leadership over decades, backed by an extensive distribution network and strong advertising and marketing support. HUL has been leveraging its distribution strengths to adapt its channel strategy for its products and market segments.

The synergies from GlaxoSmithKline Consumer Healthcare Ltd (GSK CH) merger (assets of the Horlicks brand and intellectual property rights of brands such as Boost, Maltova and Viva) will enhance the market position of HUL in the foods and refreshment segment and will increase revenue diversity in the medium term. The company plans to increase the penetration of Boost and Horlicks in rural regions, for which it has launched smaller stock-keeping units.

Strong innovation and premiumisation strategy of HUL along with benefit of integration of nutrition business will drive healthy growth and sustenance of market position in the medium term.

Robust financial risk profile: On a consolidated basis, financial risk profile is supported by strong operating cash accrual of Rs 261 crore in fiscal 2021 and nil gearing as on March 31, 2021. Net cash accrual was lower than the previous fiscal due to higher dividend payout of Rs. 8812 crore in fiscal 2021 as compared to Rs 6266 crore in fiscal 2020. Liquidity is ample with cash and bank balance and investments of Rs 7,178 crore as on March 31, 2021. The company has considerable financial flexibility because of nil debt and largely unutilised bank lines as well as healthy market capital of Rs 5.6 lakh crore as on March 31, 2021. The dividend payout policy is aggressive. In fiscal 2021, the company paid dividend of 110% of its profit after tax (PAT; 93% in fiscal 2020). However, the company has funded capital expenditure (capex) and debt obligation through internal accrual.

Healthy operating efficiency: HUL has high operating efficiency because of its strong distribution network, geographically diversified production facilities and strong linkages with the parent, Unilever Plc (Unilever; rated ‘A+/Stable/A-1' by S&P Global Ratings). Owing to a healthy mix of owned factories and outsourced production facilities across the country, HUL saves significantly on freight cost. The supply chain has been strengthened by cost saving and inventory management using artificial intelligence and other digital initiatives. The company has handheld-based selling systems across distributors.



I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Business relationship disclosure:

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure:

Source of the content - Company website, Company's presentation, Crisil rating report and Analyst conference call. Disc - Given information in the article is for knowledge purpose only as this is not an recommendation.

Disclosure legality:

I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.


Updated : Feb, 2024

Nifty closed the week in green on positive global cu...

The market is quite optimistic about Modi-3.0 and the vision of $5T nominal GDP by 2030

Author : Ashish Ghosh

Updated : Feb, 2024

A Detail Research Report on Avalon Technologies Limi...

A Detail Research Report on Avalon Technologies Limited with the tagline Manufacturing your Success

Author : KFO

Updated : Feb, 2024

Nifty may come under stress on fading hopes of an ea...

Ahead of the general election, RBI/Government is now more cautious about maintaining some price stability, while the economy growing above 7%

Author : Ashish Ghosh

Updated : Feb, 2024

Knowledge Marine Works - Big Opportunities Ahead

KMEW, or Kolkata Marine Engineering Works, is a leading player in the maritime industry, offering a comprehensive range of services including dredging, owning and operating marine crafts, shipbuilding, and marine craft repair. With its strategic positi...

Author : Sudarshan

Updated : Feb, 2024

Liquid Landscape: The Story of Ganesh Benzoplast

Ganesh Benzoplast, a leader in liquid storage and chemical manufacturing, navigates India's industrial landscape with strategic foresight and a commitment to excellence. Led by experienced leadership, the company operates storage terminals at major por...

Author : Megha Meharia

Updated : Feb, 2024

Nifty slid on a hawkish hold by the RBI

RBI holds rate with 5-1 votes; RBI may officially shift to neutral mode in April and start cutting rates from Aug’24 (in line with Fed)

Author : Ashish Ghosh

Updated : Sep, 2023

Hindustan Unilever Limited: Strong market presence a...

Financial risk profile of Hindustan Unilever Limited is strong and is being supported by healthy operating cash flow, nil gearing, largely unutilised bank lines and stable net worth. The company has high operating efficiency due to its strong distribut...

Author : TheAsianInvestor

Updated : Jun, 2023

Godrej Consumer Products Ltd. (GCPL)

Q4FY23 and FY23 Result Analysis

Author : Aditya Sharma

Updated : Feb, 2023


With over 50 brands spread across 15 different categories, the company offers a wide range of products, including fabric solutions, home & hygiene, life necessities, skincare, cosmetics, hair care, oral care, deodorants, tea, coffee, ice cream & frozen...

Author : Akshita

Updated : Jan, 2023

Godrej Consumer Products Limited

Godrej Consumer Products Limited: A Q3FY23 Business Updates

Author : Akshay Rajawat

Updated : Dec, 2022

Hindustan Unilever Limited

Hindustan Unilever Limited; A FMCG Giant

Author : Aditya Sharma

Updated : Sep, 2022

Acrysil: Business Analysis

Acrysil is a rising smallcap delivering quartz sinks across the world. A testament of its quality is reflected in the presence of IKEA as the company's client. The company is also trying to expand its portfolio with products like premium bathroom fitti...

Author : Rising Investor

Updated : Jun, 2022

Equity Research Report: Sakar Healthcare

Sakar Healthcare Ltd is engaged in manufacturing of pharmaceutical formulations in the form of liquid injectables, tablets/ capsules, oral liquid syrups, dry powder injectables and syrups. Presently, its domestic sales accounts for 31% of revenues and ...

Author : Akshita

Updated : Jun, 2022


Newgen Software Technologies is a global software Company and is engaged in the business of software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow au...

Author : Akshita

Updated : Jun, 2022

Nifty and Bank Nifty Tumbles Due to Weak Global Cues...

Nifty and Bank Nifty tumbles due to weak global cues lead by higher inflation data, higher crude oil prices and weakening currency.

Author : Shalom Martin

Updated : Jun, 2022

Equity Research Report: Shree Renuka Sugar

Shree Renuka Sugars is a global agribusiness and bio-energy corporation. The Company is one of the largest sugar producers in the world, the leading manufacturer of sugar in India, and one of the largest sugar refineries in the world.

Author : Akshita

Updated : Jul, 2022

Equity Research : Tata Consumer Products Limited

TCPL future ambitions remain aggressive, At 17% EPS CAGR over FY22-25e, TCPL should deliver industry-leading growth within indian FMCG.

Author : Shalom Martin

Updated : Jul, 2022

Equity Research: Birlasoft Ltd

Birlasoft, a small-cap IT company, has an upside potential of 35%. The company’s repeated demonstration of ‘walking the talk’ makes us believe that it is on track to achieve its stated target of USD1bn revenue by FY25E.

Author : Shalom Martin



Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....

Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....

Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....

Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....

Companies Open Date Close Date Issue Price Cost of 1 Lot GMP Expected Listing Listing Gain(%) Listing Price Current Price Type Exchange

View more.....