HUL(HINDUSTAN UNILIVER) SECTOR- FMCG TARGET PRICEGROUP- A CURRENT PRICE-323.60 PREVIOUS CLOSE-322.60 CHANGE-+1 %CHANGE-+0.

31 LISTING- 17/10/1933 BOOK VALUE-RS 12.19 FACE VALUE- 1 MARKET CAP-69.704 CRORE EPS- 10.68 PE RATIO- 30.22 SALES(IN CRORE)- 5,580.36 NET PROFIT MARGIN%-11.56 Last bonus Last dividend (%) 1:2 350

Return on average equity 87.57 DIVIDEND YIELD- 2.01% DISCRIPTION OF THE COMPANY- Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians.HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household

brands such as Lux, Lifebuoy, Surf Excel, Wheel, Fair & Lovely, Pond s, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall s and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs.19, 400 crores (financial year 2010 - 2011). HUL is a subsidiary of Unilever, one of the world s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 44 billion in 2011. Unilever has about 52% shareholding in HUL.

HIGHLITS OF THE COMPANYThe scale of Hindustan Lever's operations can be measured in many ways. They all show the deep linkages we have with India and the extent of the symbiotic relationship. We are an organisation of 36,000 employees and indirectly provide employment to a further 200,000; this is without considering the one million retailers who we service and who rely to a considerable extent on the sale of the company's products for their income. We have 7,000 redistribution stockists and source raw materials from over 2,000 suppliers and associates. We have 346,000 local shareholders who have benefitted from their investment in the company. Rs.1000 invested seven years ago, would have grown to over Rs.14,000 today. The score and scale of share value growth are not dissimilar over other time periods.
. BOARD OF DIRECTORS-

Mr. Harish Manwani (57) assumed charge as the Non-Executive Chairman of the Company with effect from 1st July, 2005.

Mr. Nitin Paranjpe (48) joined the Company as a Management Trainee in 1987. In his early years in the Company, Mr. Paranjpe worked as Area Sales Manager - Detergents and then Product Manager Detergents.

Mr. Sridhar Ramamurthy (46) joined the Company in 1989 and worked in a number of finance and commercial roles in India till December 2002 spanning Internal Audit, Factory Commercial, Post-acquisition Integration of TOMCO with HLL, Supply Chain and Corporate Accounts.
Mr. Gopal Vittal (44) has 21 years experience in Marketing & Sales in the FMCG market, including Skin Care, Soaps and Laundry.

Mr. D. S. Parekh (66) is the Chairman of Housing Development Finance Corporation Limited. COMPANY BACKGROUND-

Industry Name: Personal Care House Name: MNC Associate Incorporation Date: 17/10/1933 ISIN-INE030A102 MARKET LOT-1

KEY FINANCIAL YEAR: (MARCH 2011)(IN CRORE)

TOTAL INCOME- 19,585.24 TOTAL EXPENCES-14,217.26 EBITDA-5,376.28 EBIT-2,730.52 EBT-2,730.18 PROFIT AND LOSS FOR THE YEAR-,2307.97

INVESTMENT RATIONALISE- 1) sshhaarreehhoollddeerr wwiillll bbee ddeelliigghhtteedd!! Rs Interim Final (Proposed) Total Dividend per share of Re 2 2001 dividend includes distribution from 2010 2.50 2.50 5.00 20011 1.50 2.00 3.50

exceptional income 2)A strong balance sheet TOTAL INCOME- 19,585.24 TOTAL EXPENCES-14,217.26 EBITDA-5,376.28 EBIT-2,730.52 EBT-2,730.18 PROFIT AND LOSS FOR THE YEAR-,2307.97

3) Net sales increased in 2011 as compared to 2010.

9,401.11(2011) 17,523.80(2010) 4) FFMMCCGGlleeaadd ssaalleess ggrroowwtth. h

Rs crore

DQ 2010 DQ 2011 % Growth

9,401.11 17,523.80

Net Sales
FMCG HPC Foods Exports Others 2305 1658 647 389 69

2138 1502 636 390 120

7.8 10.3 1.8 (0.1) (42.4)

Share holding pattern. Shareholding pattern - Hindustan Unilever Ltd . Holder's Name Directors No of Shares 168808 % Share Holding 0.01%

ForeignPromoter ForeignInstitutions GeneralPublic FinancialInstitutions NBanksMutualFunds OtherCompanies ForeignNRI Others ForeignIndustries ForeignOcb CentralGovt

1134849460 396551416 313695692 192480911 62253097 50685906 7144357 2809009 25803 19081 20

52.52% 18.35% 14.52% 8.91% 2.88% 2.35% 0.33% 0.13% 0.00% 0.00% 0.00%

Segment. 1)Geographical- HUL is having its registered office and research and development centre in Mumbai.It is having its factory and plant in different parts of the country,it is also having its distribution channel in primarily all parts of the country.HUL is slowly reaching even the remotest part of the country.

2)Product- a)Food brands- Red lebel,taza,bru,tajmahal,kissan,kwality walls and etc.

b)Home care brands-Active wheel,rin,sunlight,domex,cif and etc. c)Personal care brand-axe,dove,clinc plus,close up and etc. d)Water-Pureit. e)Nutritoin f)Cooking and eating

Statergy- HUL corporate stategy states that to succeed requires "the highest standards of corporate behaviour towards everyone they work with, the communities they touch, and the environment on which they have an impact."

    

Always working with integrity Positive impact Continuous commitment Setting out our aspirations Working with others

Competitors- The various competitors of HUL are:     

Ador MultiproductsColgate-Palmolive (India) Ltd. Dabur India Ltd. Emami Ltd. Godrej Consumer Products Ltd

Comparision: Competitor comparision - Hindustan Unilever Ltd. Company Current Price Change TODAY (%Chg) Low / High -0.85 (-0.26%) 312.00 / 319.95 -2.30 (-9.80%) 21.15 / 21.15 -13.45 (-1.37%) 953.05 / 978.00 -12.80 (-2.59%) 471.70 / 484.00 -5.75 (-1.35%) 409.00 / 423.00 52 WEEK Low / High 254.00 / 346.50 16.10 / 45.20 783.20 / 1,030.90 313.20 / 545.00 325.20 / 479.70 Volume 250964 130 8870 8872 16618

Hindustan Unilever Ltd. 318.40 Ador Multiproducts Ltd. 21.15 Colgate-Palmolive (India) Ltd. 965.10 Emami Ltd. 481.40 Godrej Consumer Products Ltd. 419.80

LATEST NEWSa. HUL to seek shareholders' nod to demerge FMCG exports biz-(HUL) today said it will seek shareholders' approval to transfer certain assets, liabilities and properties of FMCG exports business division of the company to Unilever India Exports. b. Sensex gains on low volumes; HUL, banks up-Hindustan Unilever Ltd (HUL) jumped 3.5%
on a report in the Mint daily Indias largest maker of household products and consumer goods had put a property in Mumbai for sale. The asset was expected to fetch $49-$55 million, the report added.

c. HUL shares up 5 pct; hits all-time high-FMCG giant Hindustan Unilever Ltd (HUL) soared nearly 5 per
cent to hit an all-time peak on the Bombay Stock Exchange in the morning session, taking the consumer durables index higher by 84 points..

d. Hindustan Unilevers share price hints at rising investor expectations- HUL the buyback price is capped at Rs. 280, the market price reached a high of Rs. 314 last Friday, before closing at Rs. 309 on Monday. The company plans to buy back around 22.5 million shares for Rs. 630 crore. As of 14 September, the company had announced to the National Stock Exchange that it had bought back only around 400,000 shares.

e. HUL grows revenue, but at a high cost-Hindustan Unilever Ltd (HUL) surprised the Street
with a record volume growth of 14% in the quarter ended September. The company had taken some price cuts, due to which revenue growth was lower at around 11%, which, again, was higher than Street estimates. This compares with volume growth of 11% and revenue growth of around 7% in the previous quarter ended June

Hindustan Unilever- Comparative Analysis TODAY 1.03% 1.37% 1.35% 1 MONTH 4.99% 5.95% 5.64% 3 MONTH 16.04% 4.02% 3.07% 1 YEAR 24.9% 2.87% 2.48% 3 YEAR 36.43% 21.37% 21.23%

HUL SENSEX NIFTY

REASON FOR NOT INVESTING IN HUL:

Investing in a high dividend paying company is a mouth watering prospect for many. The reason for this is we feel we are guaranteed a fixed amount of return in the form of dividends every year. To get a better understanding of this market myth let us compare two companies- Hindstan Unilever Limited (HUL) which has constantly been paying very high dividends & Infosyswhich also pays dividends but much lower than HUL.

Going by the market rule of thumb, we should have invested in Hindustan Unilever which had a higher dividend payout ratio in 2001. So, what would your total return be after 10 years? A disappointing 6% every year. Though HUL continued to pay out high dividends, its price has not gone up much over the years. The returns by investing in HUL would be even lower than the returns on a Government bond or fixed deposits! On the other hand, Infosys despite paying lower dividends has performed remarkably well giving a total return of 33.7% CAGR. What was the reason behind this? Infosys invested 71% of the profits, back into its business and increased its EPS by an impressive 26.85%. This resulted in a 29% CAGR share price appreciation. Whereas, HUL invested only 22% of its profits back into its business and grew its EPS by a meager 5.38%. This resulted in a price appreciation of only 6% CAGR. Thus, contrary to the market rule of thumb, Infosys was a better investment than the high dividend paying HUL.