Data and News Relevant for analysis and valuation of the company will be given in this knol as a part of learning effort by students of investment analysis, security analysis and equity research courses. The information is meant for demonstrating the application of textbook principles by learners only. It is not for commercial decision making by investors. Investors are advised to contact and consult registered investment advisors only.
Part-1: Hindustan Unilever Ltd : Data collection:
http://knol.google.com/k/narayana-rao-kvss/hindustan-lever-ltd/2utb2lsm2k7a/625#
Part-2: Graham-Rao Analysis : Hindustan Unilever Ltd :
http://knol.google.com/k/prakash-chaudhary/hindustan-unilever-ltd-graham-rao/2n1h8kz9upqhc/6#
Part-3: Dividend discount model valuation: HUL:
http://knol.google.com/k/prakash-chaudhary/hindustan-unilever-ltd-ddm-analysis/2n1h8kz9upqhc/7#
Part-4: Country Analysis: South Korea:
http://knol.google.com/k/prakash-chaudhary/country-analysis-south-korea/2n1h8kz9upqhc/4#
About " Hindustan Unilever Limited "
HUL is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians. HUL’s mission is to “add vitality to life” through its presence in over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care, with brands that help people
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feel good, look good and get more out of life. Hindustan Unilever Ltd was incorporated as Lever Brothers India Ltd in 1922. Two Unilever subsidiaries, Hindustan Vanaspati Manufacturing Company and United Traders, were merged with Lever Brothers India in 1956 and the merged entity was rechristened 'Hindustan Lever Ltd'. In June 2007, the company's name was changed to 'Hindustan Unilever Ltd' to reflect its global identity. Parent, Unilever holds 51.43 per cent equity in the company. |
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Recent NEWS
Hindustan Unilever announces Q3 results |
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January 27, 2009 |
Hindustan Unilever Ltd has announced the following Unaudited results for the quarter ended December 31, 2008:
The results for the Quarter ended December 31, 2008
The Company has posted a net profit of Rs 6157.40 million for the quarter ended December 31, 2008 as compared to Rs 6314.40 million for the quarter ended December 31, 2007. Total Income has increased from Rs 37894.00 million for the quarter ended December 31, 2007 to Rs 43786.70 million for the quarter ended December 31, 2008
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Hindustan Unilever - HUL to license ''''Lakme'''' and ''''Lever Ayush'''' brands to Lakme Lever Private Limited |
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January 06, 2009 |
Hindustan Unilever Ltd has informed regarding a Press Release dated January 06, 2009 titled HUL to license Lakme and Lever Ayush brands to Lakme Lever Private Limited, for Beauty and Wellness Services
Pureit wins the UNESCO Water Digest Water Award 2008-2009
Mumbai, December 16, 2008: Hindustan Unilever Limited’s Pureit has received the UNESCO Water Digest Water Award 2008-2009 in the category of Best Domestic Non-Electric Water Purifier. Pureit received the award for outstanding contribution in the field of water in India.
M. Ramchandran, Secretary, Ministry of Urban Development presented the award to Siddharth Agrawal, Senior Brand Manager- Pureit, Hindustan Unilever Limited and Ajay Sharma, Regional Sales Manager (Water - North), Hindustan Unilever Limited at an award function held on December 11, 2008 in New Delhi. The Water Awards are organised by `Water Digest' which is an international magazine. Introduced in 2006, the award is supported by UNESCO & Ministry of Water Resources.
Pureit, the most advanced in-home water purifier, is a breakthrough innovation from Hindustan Unilever Limited. Pureit is available across 21 Indian states and has reached a landmark of having protected more than 1 million homes in India, with access to microbiologically safe drinking water. Pureit provides world class standard of safety, and in a product form that can be used anywhere, anytime & in any home. Pureit meets global standards of microbiological safety of water and its performance has been tested by leading international & national medical, scientific & public health institutions. Not just that, Pureit also meets the germkill criteria of the Environmental Protection Agency (EPA), the toughest drinking water regulatory agency in the USA. Pureit is the only in-home water purifier that can deliver water that is ‘as safe as boiled’ water
without the hassles of boiling, and without needing electricity or continuous running water. Pureit showcases Hindustan Unilever’s commitment to make safe, drinking water affordable to millions of Indians.
Hindustan Unilever Limited conferred HR Excellence Award Becomes the first company to score highest points
Mumbai, December 15, 2008: Hindustan Unilever Limited (HUL) has been awarded the CII (Western Region) HR Excellence Award for the year 2008. HUL is the first company to have scored more than 600 points in the four year history of the award.
Leena Nair, Executive Director- HR, Hindustan Unilever Limited received the award from S. Ramadorai, CEO & Managing Director, Tata Consultancy Services at an award function held today in Mumbai. The HR Excellence Award recognises the strength of HR processes of an organisation as well as the rigour with which these processes are administered across the organisation. It involves comprehensive documentation regarding HR processes, enablers and sustainable systems backed by in-depth personal interviews with key people across all levels, including workmen.
REFRENCE ( Recent News, HUL)
http://www.hul.co.in/mediacentre/mediacentrePressCoverage.asp
http://www.hul.co.in/mediacentre/mediacentre_2009.asp
http://money.rediff.com/money/jsp/news_details.jsp?newsCode=374728
http://money.rediff.com/money/jsp/news_details.jsp?newsCode=374726
http://money.rediff.com/money/jsp/news_details.jsp?newsCode=361383
RECENT NEWS ( FMCG Sector )
Recession report - Indian FMCG sector upbeat
BS reported that India's fast moving consumer goods industry has so far been resilient to the slowdown in the economy and a dip in consumer sentiment. If we go by the numbers for October and estimates for November, the growth only seems to have got better when compared to the earlier months.
In October, the soap and colors categories recorded a 22% and 27% value growth respectively. The estimates for November are also good, whereas in September, the growth was 12% to 13%.As per report, consumers are holding on to their monies due to the uncertainties in the markets. However, they are spending, but on small purchases. Hence, the volumes and growth in the FMCG sector has not seen a dip.An insider told BS that the FMCG industry is recording buoyant sales despite a dip in the consumer sentiment. He said that “We are seeing an interesting paradox where the slowdown has affected the corporate and is more evident at the macro level. However, the common man has not been affected.”
The source added that “No there will be no price reduction. However, you can expect more activities in the market. We will increase our spends on more trade offers, consumer offers, advertising and product launches.”To understand the impact of the current crisis, let's go back to 2004, when the FMCG industry was going through a rough patch. During this period, the spending on FMCG products had reduced as white goods, auto and real estate or housing became affordable.
FMCG to be Rs 143k cr industry by 2010
FMCG industry will grow at a compounded annual growth rate of nine per cent to reach a size of 1,43,000 crore by 2010 from present level of Rs 93,000 crore under favourable conditions projects a CII-A T Kearney report.
Source: http://sify.com/finance/insurance/fullstory.php?id=14020142
FMCG sector to grow by 25% despite slowdown: Assocham
Despite the global economic slowdown, the fast moving consumer goods (FMCG) sector in India will grow at 25 percent and reach $25 billion, a report by an industry lobby released Wednesday said.
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According to the Associated Chambers of Commerce and Industry of India (Assocham), FMCG sales have not been affected by the ongoing slowdown, and the sector is expected to touch $25 billion by the end of 2008, as against $20 billion in 2007.
As per the report, the growth of FMCG in rural areas alone will touch $5 billion by this month-end. In 2007, rural sales of FMCG stood at $3 billion, Assocham said.
The study is based on the feedback given by major FMCG players like Hindustan Unilever, Godrej, Dabur, ITC, Johnson and Johnson, Procter and Gamble, Reckitt and Benckiser, Parley, Britannia, and Nestle.
Analysis of FMCG Sector
SWOT Analysis
Strengths:
Presence of established distribution networks in both urban and rural areas
Low Operational Costs
Presence of well-known brands in FMCG sector
Availability of raw materials
Weaknesses:
"Me-too" products which illegally mimic the labels and brands of the established brands Lower scope of investing in technology and achieving economies of scale, especially in small sectors
Low exports levels
Opportunities:
Large domestic market – over a billion populations
Untapped rural market
Rising income levels, i.e. increase in purchasing power of consumers
Export potential and tax & duty benefits for setting exports units
Threats:
Tax and regulatory structure
Removal of import restrictions resulting in replacing of domestic brands
Temporary Slowdown in Economy can have an impact on FMCG Industry
Key Take Away for Investors
Robust Growth rate in Future
Wide distribution network and supply chain
Customized Product range to suit local market requirements
Superior processing technology
Brand building and marketing
Higher Disposable Income
Awareness about Nutrition and Hygiene
SOURCE:http://www.valuenotes.com/hem/hem_FMCG_16Jan09.asp?ArtCd=141071&Cat=I&Id=13
HINDUSTAN LEVER FINANCIAL REPORTS
Quarterly results in brief( in Rs Crore)
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Dec ' 08 |
Sep ' 08 |
Jun ' 08 |
Mar ' 08 |
Dec ' 07 |
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Sales |
4,378.67 |
4,110.91 |
4,215.67 |
3,793.94 |
3,687.40 |
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Operating profit |
764.02 |
559.36 |
551.49 |
407.83 |
564.2 |
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Interest |
-29.15 |
-40.89 |
-72.06 |
-20.08 |
2.58 |
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Gross profit |
793.17 |
600.25 |
707.44 |
505.21 |
721.32 |
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EPS (Rs) |
2.83 |
2.51 |
2.56 |
1.75 |
2.9 |
http://money.rediff.c om/money/jsp/co_results_q.jsp?companyCode=12520002
Half yearly results in brief
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Dec ' 08 |
Jun ' 08 |
Dec ' 07 |
Jun ' 07 |
Dec ' 06 |
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Sales |
8,489.58 |
8,009.61 |
7,052.03 |
6,665.72 |
6,222.11 |
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Operating profit |
1,293.09 |
959.31 |
1,011.79 |
873.92 |
902.91 |
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Interest |
-70.04 |
-92.14 |
9.33 |
16.17 |
5.26 |
|
Gross profit |
1,363.13 |
1,212.64 |
1,268.02 |
1,054.87 |
1,101.41 |
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EPS (Rs) |
5.33 |
4.31 |
4.77 |
4.01 |
4.68 |
http://money.rediff.com/money/jsp/co_results_hy.jsp?companyCode=12520002
Annual results in brief
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Dec ' 08 |
Dec ' 07 |
Dec ' 06 |
Dec ' 05 |
Dec ' 04 |
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Sales |
16,660.38 |
13,717.75 |
12,103.39 |
11,060.55 |
9,926.95 |
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Operating profit |
2,443.87 |
1,885.70 |
1,648.06 |
1,443.33 |
1,437.37 |
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Interest |
-162.18 |
25.5 |
10.74 |
19.19 |
129.98 |
|
Gross profit |
2,606.05 |
2,322.88 |
1,991.84 |
1,728.92 |
1,626.23 |
|
EPS (Rs) |
9.64 |
8.83 |
8.41 |
6.2 |
5.37 |
http://money.rediff.com/money/jsp/co_results_annual.jsp?companyCode=12520002
Bonus announcement
|
Year |
Month |
Ratio |
Ex Bonus Date |
|
1991 |
Sep |
1:2 |
19/07/1991 |
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1987 |
Jun |
1:1 |
- |
|
1983 |
Jun |
3:5 |
- |
|
1979 |
Jun |
1:3 |
- |
http://money.rediff.com/money/jsp/bonus.jsp?companyCode=12520002
Dividend
|
Year |
Month |
Dividend (%) |
|
2008 |
Jul |
350 |
|
2008 |
Feb |
300 |
|
2007 |
Oct |
300 |
|
2007 |
Jul |
300 |
|
2007 |
Feb |
300 |
|
2006 |
Jul |
300 |
|
2006 |
Feb |
250 |
|
2005 |
Jul |
250 |
|
2005 |
Feb |
250 |
|
2004 |
Jul |
250 |
|
2004 |
Feb |
300 |
|
2003 |
Jul |
250 |
|
2003 |
Jan |
300 |
|
2002 |
Jul |
250 |
|
2002 |
Jan |
250 |
|
2001 |
Oct |
276 |
|
2001 |
Jun |
250 |
|
2001 |
Feb |
200 |
|
2000 |
Jul |
150 |
|
2000 |
Feb |
170 |
|
1999 |
Aug |
120 |
|
1999 |
Feb |
12 |
|
1998 |
Jul |
120 |
|
1998 |
Feb |
95 |
|
1997 |
Aug |
75 |
|
1997 |
Mar |
65 |
http://money.rediff.com/money/jsp/dividend.jsp?companyCode=12520002
|
Hindustan Unilever Ltd. |
Dec 2002 |
Dec 2003 |
Dec 2004 |
Dec 2005 |
Dec 2006 |
Dec 2007 |
|
Rs. Crore (Non-Annualised) |
12 mths |
12 mths |
12 mths |
12 mths |
12 mths |
12 mths |
|
- |
|
|
|
|
|
|
|
Total income |
12272.05 |
12566.41 |
12095.98 |
12902.92 |
14475 |
15802.63 |
|
Sales |
11722.27 |
11919.03 |
11687.37 |
12640.14 |
13544.14 |
15138.49 |
|
Change in stock |
5.02 |
106.32 |
-82.81 |
-89.45 |
122.28 |
154.67 |
|
Total expenses |
10519.17 |
10890.56 |
10894.67 |
11542.7 |
12581.35 |
13883.76 |
|
PAT |
1752.88 |
1675.85 |
1201.31 |
1360.22 |
1893.65 |
1918.87 |
|
PBDITA |
2456.6 |
2451.44 |
1868.54 |
1833.15 |
2375.03 |
2513.63 |
|
PBDTA |
2443.74 |
2382.32 |
1732.29 |
1808.95 |
2361.06 |
2487.14 |
|
PBT |
2251.09 |
2182.33 |
1536.61 |
1670.57 |
2225.39 |
2345.23 |
www.cmie.com
http://knol.google.com/k/narayana-rao-kvss/hindustan-lever-ltd/2utb2lsm2k7a/void(0);
PAST 10 YEARS REPORT ( Snap Shot )
|
|
Dec-98 |
Dec-99 |
Dec-00 |
01-Dec |
02-Dec |
03-Dec |
04-Dec |
05-Dec |
06-Dec |
07-Dec |
|
|
12 mths |
12 mths |
12 mths |
12 mths |
12 mths |
12 mths |
12 mths |
12 mths |
12 mths |
12 mths |
|
Total income |
10492.65 |
11262.13 |
11812.13 |
12489.92 |
11620.9 |
11811.21 |
11548.93 |
12524.95 |
13946.11 |
15465.58 |
|
PAT net of P&E |
834.8 |
1078.61 |
1296.57 |
1529.44 |
1695.52 |
1709.1 |
997.59 |
1279.25 |
1537 |
1714.28 |
|
GFA |
1383.46 |
1480.39 |
1670.14 |
1940.05 |
1998.7 |
2150.88 |
2322.69 |
2377.64 |
2465.33 |
2668.41 |
|
Net Worth |
1713.03 |
2103.26 |
2488.24 |
3043.7 |
3658.88 |
2138.73 |
2092.71 |
2305.62 |
2723.49 |
1439.25 |
|
Borrowings |
264.31 |
177.28 |
111.6 |
83.73 |
58.3 |
1704.31 |
1471.11 |
56.94 |
72.6 |
88.53 |
|
PBDITA/Total income (%) |
11.99058 |
13.74305 |
15.20183 |
16.68754 |
19.9525 |
20.22604 |
13.587493 |
13.70776 |
14.33869 |
14.84121514 |
|
PAT netof P&E/Tot inc(%) |
7.692675 |
9.54615 |
11.2827 |
13.40871 |
16.0742 |
15.28736 |
10.632862 |
11.42156 |
13.7465 |
12.67585513 |
|
RONW |
54.18873 |
56.27088 |
57.81684 |
59.30288 |
54.4823 |
61.12139 |
56.592555 |
64.02885 |
73.78522 |
92.50974118 |
|
ROCE |
48.34381 |
52.94109 |
56.33159 |
58.10784 |
53.61606 |
49.36489 |
34.772533 |
49.18379 |
73.73274 |
92.48752324 |
www.cmie.com
Original post by Prakash Chaudhary in Knol - Number 625.
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