Company Update - Hindustan Unilever - ICICI Direct

We attended HUL's analyst meet to get a sense of backroom work behind mammoth scale of marketing, distribution & manufacturing.

- Market leadership in more than 85% of its business; i.e. market leader in eight categories and No. 2 in four categories

- Established 19 new brands in the last 10 years; market development categories contributing Rs. 10,000 crore (20%) to total sales

- Driving premiumisation; contribution up to 33% from 22% in a decade

Key triggers for future price performance

- Home care categories have grown through premiumisation in the last decade with premium laundry contributing 52% of volumes in 2021 vs. 31% in 2010. The segment has seen market share gains of 500 bps

- Digital demand capture is 25% of total sales with e-commerce contributing 7-8% of sales. The biggest lever in digital demand capture is eB2B app 'Shikhar' utilised by 1 million stores

- In the last one year, HUL has taken a 12% price hike to counter 22% material inflation. It has been able to drive savings to the tune of 7% through cost rationalisation measure. HUL is looking to recoup lost gross margins

For details, click on the link below: Link to the report

Shares of Hindustan Unilever Limited was last trading in BSE at Rs. 2483.25 as compared to the previous close of Rs. 2458.80. The total number of shares traded during the day was 57325 in over 2458 trades.

The stock hit an intraday high of Rs. 2488.50 and intraday low of 2448.55. The net turnover during the day was Rs. 140990139.00.

Source : Equity Bulls

Keywords

HindustanUnilever INE030A01027 HUL FMCG AnalystMeetUpdate ICICIDirect