HUL – Q2 FY20 (Unaudited – Cons.)
Share price - 2009
Total Income at 10,223 Cr
10,509 Cr (-2.72%) YoY | 9,723 Cr (5.19%) QoQ
Half year revenue: 20,732 Cr Vs. 19,632 Cr (5.62%)
Net Profit of 1,818 Cr
1,795 Cr (1.28%) YoY 1,473 (23.47%) QoQ
Half year ending Net Profit: 3,613 Cr Vs. 3,042 Cr (18.74%)
EPS (in Rs.) 8.38
8.27 YoY | 6.83 QoQ
Year ending EPS: 16.66 Vs. 14.06
View: Result is overall good. YoY topline slightly down despite bottom line up due to benefit of lower tax introduced in this financial year accordingly company has recognized Provision for Income Tax for the six months ended Sep 2019 and re measured its DTA basis the rate prescribed in the said section.. Their topline segment Home Care – 33%, Beauty & Personal care – 45%, Foods & refreshment – 18%, other – 4%. YoY topline growth for Home care – (2.7%), Beauty & Personal care – (1%), Food & refreshment – (5%) and others – (5%). YoY bottom line growth for Home care – (15%), Beauty & Personal care – (3.5%), Food & refreshment – (22%) and others – (5%). All segment growth looks like negative and bottom line more cracking due to prices declined on various products on all the segments and slow down impact as well.
Q2FY19 EBITDA is around INR 2,443 Cr Vs. 2,019 Cr in Q2FY18 grew by 21%. Domestic Consumer Growth was 7% with Underlying Volume Growth at 5%. Reported EBITDA improvement was 310 bps (200 bps on comparable basis after adjusting for accounting impact of Ind AS 116 on leases). Profit after tax (PAT) grew by 20%.
ROE and ROCE is around 82% and 119% respectively and book value per share is around INR 35 and share is currently trading at 57x of its book value. Promoter holding in the company is around 67.18% and which is stable on QoQ and YoY. FIIs hold stake around 12.06%, Insurance cos hold around 4.27% and mutual fund hold around 2.2% in the company and both FIIs and mutual fund minor increased their stake in this quarter. The good thing is company is debt free and cash realization from debtor is too fast so much liquidity into the company. The ROE is continuously maintained uptrend for past 4-5 years and going higher by higher on every year.
The Board of Directors has declared an interim dividend of Rs. 11 per share for the year ending 31st March 2020. Last year Interim dividend paid it was around INR 9 per share.
Share price high 2101 and now 2014 almost all time high. Hindustan Unilever is India’s largest fast-moving consumer goods (FMCG) company with a historical presence in India of over 80 years. Their brand is very popular and reputed among all the age group and cities as well eg. Lux, Ponds, Nivea, Head & Shoulders are very popular with among themselves competitors.
Long term investor should continue with the company with target price of INR 2500. Add on every dip