• India’s FMCG Sector stands at USD 70 Bn market and it is a major contributor to India’s GDP.
• HUL with its 44+ brands across 14 distinct categories, dominates the FMCG market in India. 90% of households in India use one or more HUL brands. It has also entered the top 15 global consumer staple stocks list with a current market cap of USD 75Bn
• HUL revenue contribution from home care is 35%, Beauty & personal care - 45%, Food and refreshment - 19% and Others - 1%
• Leading fabric wash brand (surf excel) generates Rs. 5,000+ Cr. revenue. And with a market share of ~18%, it accounts for 14% of its revenue and 45% of its laundry segment sales.
• HUL’s top three brands generate Rs. 2,000+ Cr. Revenue and the next eight brands generate Rs. 1,000+ Cr revenue and nine brands generate Rs. 500+ Cr. Revenue
• HUL’s revenue during Q4FY22 came in at INR 13,190 Cr, up by 10.40% from INR 11,947 Cr in the Q4FY21
• HUL’s volume growth was flat but it continued to grow significantly ahead of the market, gaining value and volume market shares
• EBIDTA margin during Q4FY22 was at 24.6% despite very high inflationary headwinds
• Homecare segment growth was at 24% was broad-based with a strong performance in fabric wash and household care. Beauty and personal care grew stood at 4%. Foods and refreshments grew 5% driven by solid performance in Beverages, Foods, and ice cream
Technical Analysis
• For the past 3-months the stock has been moving in an uptrend
• In the MACD indicator, the 12-day MACD curve (Red curve) cuts the 26-day MACD curve (Blue curve) and moves above the 26-day MACD curve. It gives the first indication to go long on the stock
• The stock has recently touched its bottom trend line and when the 5-day moving average curve (Red curve) cuts the 20-day moving average curve (Blue curve) and moves above the 20-day moving average curve. It gives the confirmation to go long. Check whether the volumes are higher than the 20-day average
Note: This is not a BUY/SELL recommendation. This is just an analysis for educational purpose
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