MOSL: HINDUSTAN UNILEVER (Buy)-Gradual broad-based improvement in demand
Hindustan Unilever: Gradual broad-based improvement in demand
(HUVR IN, Mkt Cap USD44.1b, CMP INR1299, TP INR1515, 17% Upside, Buy)
We spoke to Hindustan Unilever’s (HUL) management to get an update on the overall market environment. Key takeaways from our discussion:
- Market demand has been improving gradually over the past few quarters. Encouragingly, growth has been broad-based across categories and regions.
- Central India continues to do better than the rest of the regions for HUL, in line with the company’s strategy.
- Although rural performance has improved substantially, rural demand growth is yet to reach the buoyant historical levels, when it was 1.5-2x of urban demand growth.
- 3QFY18 had the benefit of a low base, which would be missing in 4QFY18.
- Wholesale and CSD channels, which were lagging behind for many quarters, are now back to normal.
- There were no major new launches in the quarter in the FMCG industry.
- Adspend intensity in the market was almost flattish during the quarter.
- This quarter, HUL has launched an anti-dandruff shampoo product under a completely new brand Purel.
Hindustan Unilever is predominantly engaged in manufacturing and distributing consumer products mainly in India. Co. operates five main business segments: Soaps and Detergents include soaps, detergent bars, detergent powders, detergent liquids, scourers, etc.; Personal Products include products in the categories of Oral Care, Skin Care (excluding soaps), Hair Care, Deodorants,Talcum Powder, Colour Cosmetics, Ayush services; Beverages include tea and coffee; Package Foods include Branded Staples (Atta, Salt, Bread, etc.), Culinary Products (tomato based products, fruit based products, soups, etc.) and Frozen desserts; Others include Exports, Chemicals, Water business, Infant Care Products.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.