Hindustan Unilever
BSE SENSEX
27,117
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm/ Vol m
Free float (%)
S&P CNX
8,392
HUVR IN
Volumes below expectations; cautious outlook
2,164.3
HUVR’s 3QFY17 performance was below expectations.
Net sales declined
1,823.4 / 27.3
0.7% YoY (est. of +1.5%) to INR77.1b, led by underlying volume fall of 4% (est.
954 / 765
of -1%). This was attributable to demonetization, as well as the adverse impact
5/-1/1
on soap volumes from further price increases during the quarter in response to
1186
32.8
the sharp rise in input costs. EBITDA declined 5.2% YoY to INR13.55b (est. of
23 January 2017
3QFY17 Results Update | Sector: Consumer
CMP: INR863
TP: INR865(0%)
Neutral
Financials & Valuations (INR b)
Y/E Mar
2016 2017E 2018E
305.0 311.3 338.2
Net Sales
57.3
58.5
64.5
EBITDA
41.2
41.7
46.5
PAT
19.0
19.3
21.5
EPS (INR)
12.9
1.1
11.7
Gr. (%)
29.0
28.0
26.9
BV/Sh (INR)
82.4
67.6
78.4
RoE (%)
108.1
88.5 102.0
RoCE (%)
45.3
44.8
40.1
P/E (x)
29.7
30.8
32.1
P/BV (x)
Estimate change
TP change
Rating change
INR13.73b), and adj. PAT fell 10.2% YoY to INR9.2b (7.1% below estimates).
Gross margin contracted 40bp YoY
to 51.4%. Management called out an
increase in material costs going forward, which, in our view, will be difficult to
pass on in a tough volume growth environment. EBITDA margin contraction of
80bp was not as steep as expected (-100bp) due to lower staff costs (-130bp
YoY) and ad spends (-40bp YoY).
Personal care leads sales disappointment:
Personal care revenue declined 3%
YoY. Barring refreshment (+8%), other segments reported flattish growth. All
segments reported YoY EBIT margin decline.
Concall highlights:
(1) Sales for December were better than November, but
were still down YoY. (2) Management is excited about the longer-term
opportunity in the newly launched Ayush range of herbal products in the
popular pricing category across the four southern states in segments like soaps,
shampoos, toothpastes, hand wash conditioners and face wash.
Maintain Neutral:
Rural demand recovery – the key factor for volume revival –
is unclear as of now, particularly after the potential benefits of a near-normal
monsoon were washed away by demonetization. Moreover, until volumes
revive, ongoing material cost inflation will check margin expansion, and EPS
growth will be tepid despite continuing premiumization. Valuations of 36x Dec-
2018 EPS remain fair, in our view. Maintain
Neutral
with a target price of
INR865 (36x Dec-2018 EPS), 10% discount to three-year average multiple.
(INR Million)
FY17
2Q
3Q
-1.0
-4.0
78,427 77,060
1.4
-0.7
39,620 37,446
38,807 39,613
49.5
51.4
24,760 26,059
14,046 13,554
5.1
-5.2
17.9
17.6
945
1,002
49
46
2,528
824
15,580 13,331
4,807
4,482
30.9
33.6
10,818
9,199
10,956 10,379
11.5
6.8
FY16 Ind AS
4QE
-0.5
80,680
4.5
40,626
40,054
49.6
25,487
14,567
-0.9
18.1
1,041
16
1,105
14,616
3,591
24.6
11,025
11,025
(1.0)
5.8
310,610
153,053
157,557
50.7
100,065
57,491
18.5
3,208
153
5,638
59,769
18,096
30.3
41,673
41,673
FY17E
-0.5
317,448
2.2
157,247
160,201
50.5
101,675
58,527
1.8
18.4
3,921
170
5,534
59,970
18,291
30.5
41,679
41,679
0.0
Estimate
Variance
3QE
-1.0
78,804
-2.2%
1.5
39,167
-4.4%
39,637
-0.1%
50.3
25,909
0.6%
13,728
-1.3%
-4.0
17.4
904
45
1,161
13,940
-4.4%
4,043
29.0
9,898
-7.1%
9,898
1.9
Quarterly performance
Y/E March
Vol ume Growth (%)
Net Sales
YoY Cha nge (%)
COGS
Gross Profit
Ma rgi n %
Opera ti ng Exp
EBITDA
YoY Cha nge (%)
Ma rgi ns (%)
Depreci a ti on
Interes t
Other Income
PBT
Ta x
Ra te (%)
Adjusted PAT
Reported Profit
YoY Cha nge (%)
E: MOSL Estimates
1Q
6.0
78,445
38,976
39,469
50.3
24,349
15,120
19.3
749
47
1,230
15,554
4,960
31.9
10,628
10,692
FY16
2Q
3Q
7.0
6.0
77,314 77,640
38,965
38,349
49.6
24,982
13,366
17.3
761
45
1,944
14,503
4,560
31.4
9,902
9,822
37,424
40,216
51.8
25,914
14,302
18.4
822
45
1,451
14,886
4,373
29.4
10,241
9,717
4Q
4.0
77,212
37,688
39,523
51.2
24,820
14,703
19.0
875
16
1,014
14,826
4,203
28.3
11,135
11,135
1Q
4.0
81,282
3.6
39,555
41,727
51.3
25,368
16,359
8.2
20.1
933
60
1,076
16,442
5,411
32.9
11,277
11,739
9.8
Krishnan Sambamoorthy
(Krishnan.Sambamoorthy@MotilalOswal.com); +91 22 3982 5428
Vishal Punmiya
(Vishal.Punmiya@MotilalOswal.com); +91 22 3980 4261
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Hindustan Unilever
Key Quarterly Charts
Exhibit 1:
Volumes declined 4%; below expectation
Pricing growth %
4.0 3.0
6.0
Volume growth (%)
Exhibit 2:
Gross margins contracted 40bp YoY
Gross margin (%)
51.8
51.3
51.4
5.0
6.0 7.5 7.4 5.4 4.6
6.0 7.0 6.0
4.0 4.0 3.0 4.0
3.0
(0.4)
0.0
(1.0)
(1.0) (2.0) (2.7)
(4.0)
3.0 6.0
51.2
50.3
49.6
49.5
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Source: Company, MOSL
Source: Company, MOSL
Exhibit 3: Gradual recovery seen in secondary sales growth trend for HUL
Source: Company, MOSL
Exhibit 4: Flat domestic consumer business sales impacted by reduced trade pipelines and lower consumer off take
Domestic FMCG Sales Growth (%)
Source: Company, MOSL
Exhibit 5: Domestic consumer business volumes decline by 4% YoY
Volume growth (%)
Source: Company, MOSL
23 January 2017
2

Hindustan Unilever
Exhibit 6:
A&P spends down 40bp YoY...
Advertising & promotion (%)
11.9
11.4
11.9
11.5
11.2
10.8
10.9
4.6
4.9
5.1
Exhibit 7: ...employee expenses up 20bp...
Staff Cost (%)
5.7
5.2
5.0
5.3
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Source: Company, MOSL
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Source: Company, MOSL
Exhibit 8: ...other expenses were up 60bp YoY..
Other expenditure (%)
17.0
16.4
15.1
15.5
15.2
15.7
15.1
Exhibit 9:
...led to EBITDA margin contraction of 80bp YoY
EBITDA margin (%)
20.1
19.3
18.4
17.3
19.0
17.9
17.6
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Source: Company, MOSL
1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17
Source: Company, MOSL
Exhibit 10: Segmental growth during the quarter
Home care
Personal care
Refreshment
Foods
Domestic Consumer
Reported Sales growth (%)
1.0
(3.0)
8.0
1.0
0.0
Note: Sales growth=Segment t/o growth excluding other operational income
Source: Company, MOSL
Exhibit 11: Personal care saw price increase during the quarter
Segmental EBIT margin (%)
- Home Care
- Personal Care
- Foods
- Refreshments
- Others (includes Exports, Infant & Feminine Care Products, etc)
Total
2QFY16 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY change QoQ change
8.3
8.9
12.2
12.4
10.1
8.7
(0.1)
1.74
22.0
24.2
25.7
24.2
22.9
23.1
(1.1)
0.47
6.0
13.6
1.7
15.4
12.6
14.8
(2.4)
16.9
13.5
16.9
4.7
18.8
6.2
15.8
(4.6)
17.9
4.9
14.8
4.2
16.5
9.4
14.7
(8.5)
16.1
(3.2)
(0.1)
(6.1)
(0.8)
(7.16)
(0.73)
(9.53)
0.62
Source: Company, MOSL
23 January 2017
3

Hindustan Unilever
Exhibit 12: PFAD prices were up
70.5%
YoY in 3QFY17
Palm Fatty Acid price (INR/MT)
46,904
42,000
33,000
24,000
15,000
150
130
110
90
70
126.0
100.1
87.1
88.1
90.1
Exhibit 13: ..and LAB
prices
were up 3% YoY
LAB Price by RIL (INR/Kg)
Source: Bloomberg, MOSL
Source: Bloomberg, MOSL
Exhibit 14: Newly launched Ayush range of herbal products in the popular pricing
segments across the four Southern states
Source: Company, MOSL
Concall highlights
Performance and outlook
Performance across categories was affected by adverse market conditions.
3QFY17 volume growth was -4% and 9MFY17 volume growth was-1%.
Premiumization process continues.
Market conditions to improve gradually.
Rising trend in input costs will continue.
Maintained commitment on modest margin improvement every year. Cost
Savings, pricing, mix, zero based media budgeting will enable modest
improvement in operating margins every year.
Demonetization
Rural wholesale still under pressure.
Within rural central India was the most affected. Smaller rural wholesalers and
large urban wholesaler’s sales are coming back. It is the large rural wholesalers
who are struggling as of now.
Wholesale pipeline lower than usual. Better at the end of December than
November end but still lower than normal levels. Extended credit from 9th
November and then pulled it back on better stability. Made supply chain far
more agile to cater to changes.
23 January 2017
4

Hindustan Unilever
Nov 8-Nov 30 witnessed sharp sales decline. December also reported decline in
sales YoY but at a slower pace. Did not share January performance data so far.
Have they seen any gain from unorganized in detergents and tea? Management
said it is too early to comment, will have more clarity in two months.
Segmental information, new launches
Excited about new Lever Ayush range, very happy with response so far. Arya
Veda Pharmacy developed products based on ancient Vedas. Toothpaste, soaps,
hand washes, shampoos, conditioners and face wash are the key products.
Lever Ayush- Different mixes compared to old Ayush products with new
products as well. New team in place.
Lever Ayush- There will be some level on cannibalization but in hand washes,
face wash and conditioners which are nascent there will be less
cannibalization.
Did not share plans for national rollout of Ayush. Management stated that they
want to observe performance in the four Southern states initially before rollout.
Personal wash further price increase in 3Q also impacted volumes and was a key
factor behind overall 4% volumes decline.
Every sub segment in personal care affected.
Oral care performance was subdued. Expect Ayush to contribute positively.
Tea reported broad based double digit sales growth led by differentiated WIMI
strategy.
Winter period sales were a mixed performance. October was great but
demonetization affected performance in other months albeit lesser impact
compared to other categories.
Financials
Assam unit expansion on target. Effective Tax rate despite other exemptions
coming off will be down 50bp YoY in FY18.
Cash yields coming down. Thus management is keen on making the earlier plan
to transfer from general reserve and pay it out. Hoping for an approval from the
authorities soon.
Other income and other expense quarterly volatility can be partly explained by
gap between charges on account of Unilever and the receipt of income due
from Unilever.
Home care margins declined due to operating deleverage and commodity cost
increases.
Inventory reduced YoY as the planning was much better. Debtor days had
increased but by early December were back to normal levels.
Valuation and view
Rural demand recovery, which will be key factor in volume recovery, is unclear
as of now, particularly after the potential benefits of a near normal monsoon
were washed away by demonetization. Moreover, until volumes revive, ongoing
material cost inflation will check margin expansion and EPS growth will be tepid
despite continuing premiumization.
Valuations of 36x Dec’2018 EPS remain fair, in our view. Maintain Neutral with
target price of INR865 (36x Dec’18 EPS,) 10% discount to 3-year-avg multiple.
5
23 January 2017

Hindustan Unilever
Exhibit 15: We change our estimates downwards by ~2-4% for FY17/FY18
INR M
Total Income
EBITDA
Adjusted PAT
FY17E
317,448
58,527
41,679
New
FY18E
344,984
64,514
46,548
FY19E
384,350
74,223
53,706
FY17E
321,525
59,137
42,690
Old
FY18E
351,859
66,959
48,537
FY19E
393,913
76,932
55,826
% Change
FY17E FY18E FY19E
-1.3% -2.0% -2.4%
-1.0% -3.7% -3.5%
-2.4% -4.1% -3.8%
Source: Company, MOSL
Exhibit 16: HUVR P/E (x)
55.0
45.0
35.0
25.0
15.0
31.0
18.7
38.0
PE (x)
Peak(x)
Avg(x)
49.9
Min(x)
Exhibit 17: Significant P/E premium vs. Sensex
200
150
100
50
0
-50
84.5
Hind. Unilever PE Relative to Sensex PE (%)
LPA (%)
133.1
Source: Bloomberg, Company, MOSL
Source: Bloomberg, Company, MOSL
Exhibit 18: Valuation Matrix of coverage universe
Company
Reco
Price
(INR)
964
3,084
902
277
997
1,540
5,007
863
259
351
255
5,903
14,066
260
628
6,802
117
808
2,203
845
291
364
Mkt Cap
(USD M)
13,565
5,425
3,597
7,145
3,318
7,689
3,088
27,392
45,933
930
4,822
8,348
2,301
321
4,724
3,238
226
3,132
4,696
815
350
4,740
EPS Growth YoY (%)
FY16 FY17E FY18E
26.3
46.3
8.7
17.2
17.7
24.4
20.4
12.9
-3.5
-41.7
26.1
-7.3
18.7
-66.7
47.3
22.0
3.9
12.8
LP
-11.7
19.3
-13.4
7.7
0.8
-0.4
0.8
-1.9
10.8
-5.6
1.1
8.5
84.7
6.4
-7.0
18.6
4.6
10.9
6.6
-23.5
11.2
71.2
-28.1
-47.7
8.9
12.2
16.3
22.4
18.5
23.6
19.0
13.4
11.7
14.3
18.6
21.1
24.8
26.4
37.7
12.2
22.0
33.8
32.6
64.1
72.3
201.0
11.5
FY16
51.5
44.0
40.3
38.9
39.6
46.4
30.0
45.3
33.6
85.5
45.5
49.2
67.4
38.7
42.6
52.3
16.9
72.8
131.7
56.5
49.9
45.3
P/E (x)
FY17E
47.8
43.7
40.5
38.6
40.3
41.9
31.8
44.8
31.0
46.3
42.7
52.9
56.9
37.0
38.4
49.1
22.1
65.5
76.9
78.6
95.4
41.6
FY18E
42.6
37.6
33.1
32.6
32.6
35.2
28.0
40.1
27.1
39.0
35.3
42.4
45.0
26.9
34.2
40.3
16.5
49.4
46.9
45.6
31.7
37.3
EV/EBITDA (x)
FY16 FY17E FY18E
32.6
31.4
25.6
31.1
33.9
34.4
19.4
32.1
21.4
30.6
31.2
34.6
41.8
14.9
25.9
34.7
11.4
32.1
37.4
20.6
12.1
37.5
30.3
31.4
24.2
31.0
30.0
31.8
21.8
31.4
20.5
25.8
29.4
31.3
37.1
15.8
25.1
31.8
12.5
31.3
33.5
22.3
17.9
30.9
27.2
26.5
20.0
26.0
25.6
27.6
18.9
28.5
17.7
22.8
24.4
24.9
28.6
12.6
22.2
25.4
11.3
25.1
24.9
15.7
10.6
27.7
RoE (%)
FY16
34.7
55.9
67.9
33.3
43.4
23.4
30.8
82.4
29.3
9.1
36.9
40.9
46.0
19.5
29.9
30.8
10.3
14.8
19.8
13.4
6.3
21.3
Div.
FY16
0.9
0.6
1.2
0.7
0.8
0.6
1.1
1.9
2.6
1.1
1.3
0.8
0.6
0.0
0.7
0.5
0.6
0.1
0.0
0.3
0.0
0.7
Consumer
Asian Paints Neutral
Britannia
Buy
Colgate
Buy
Dabur
Neutral
Emami
Buy
Godrej
Neutral
GSK
Neutral
HUL
Neutral
ITC
Buy
Jyothy Labs Neutral
Marico
Buy
Nestle
Neutral
Page
Buy
Parag Milk
Neutral
Pidilite Inds.
Buy
P&G Hygiene Buy
Radico
Neutral
United Brew. Buy
United Spirits Buy
Retail
Jubilant
Neutral
Shopper's
Neutral
Titan
Neutral
Note: For Nestle FY16 means CY15
Source: Company, MOSL
23 January 2017
6

Hindustan Unilever
Financials and valuations
Income Statement
Y/E March
Net Sales
Other Oper. Income
Total Revenue
Change (%)
COGS
Gross Profit
Gros Margin (%)
Operating Exp
% of sales
EBIDTA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Other Income - Recurring
Profit before Taxes
Change (%)
Margin (%)
Tax
Deferred Tax
Tax Rate (%)
Profit after Taxes
Change (%)
Margin (%)
Non-rec. (Exp)/Income
Reported PAT
FY12
217,356
3,808
221,164
12.1
117,378
103,786
46.9
70,873
32.0
32,913
22.9
14.9
2,183
12
2,783
33,502
22.7
15.4
7,769
8
23.2
25,725
22.6
11.8
1,189
26,914
FY13
252,064
6,038
258,102
16.7
134,888
123,214
47.7
83,176
32.2
40,038
21.6
15.5
2,360
252
6,069
43,495
29.8
17.3
11,518
95
26.7
31,883
23.9
12.6
6,084
37,967
FY14
274,083
6,108
280,191
8.6
143,436
136,755
48.8
92,003
32.8
44,753
11.8
16.0
2,606
360
6,210
47,997
10.4
17.5
12,196
248
25.9
35,553
11.5
13.0
3,122
38,675
FY15
301,705
6,351
308,056
9.9
156,236
151,821
49.3
99,738
32.4
52,082
16.4
16.9
2,867
168
6,184
55,231
15.1
18.3
19,060
-338
33.9
36,510
2.7
12.1
6,643
43,153
FY16
304,991
5,619
310,610
0.8
153,130
157,480
50.7
100,181
32.3
57,299
10.0
18.4
3,208
2
5,006
59,096
7.0
19.4
18,231
-349
30.3
41,214
12.9
13.5
-390
40,824
FY17E
311,268
6,181
317,448
2.2
157,247
160,201
50.5
101,675
32.0
58,527
2.1
18.4
3,921
170
5,534
59,970
1.5
19.3
17,691
600
30.5
41,679
1.1
13.4
0
41,679
(INR Million)
FY18E
338,185
6,799
344,984
8.7
169,673
175,312
50.8
110,798
32.1
64,514
10.2
18.7
3,944
170
6,098
66,498
10.9
19.7
19,285
665
30.0
46,548
11.7
13.8
0
46,548
FY19E
376,871
7,479
384,350
11.4
187,874
196,476
51.1
122,253
31.8
74,223
15.1
19.3
3,974
170
6,645
76,724
15.4
20.4
22,250
767
30.0
53,706
15.4
14.3
0
53,706
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Investment in Subsidiaries
Current Investments
Deferred Charges
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Account Payables
Other Liabilities
Provisions
Net Current Assets
Application of Funds
E: MOSL Estimates
FY12
2,162
32,968
35,129
35,129
35,747
-14,169
21,578
2,051
1,863
22,519
2,142
59,429
25,167
6,790
18,300
9,172
74,453
37,826
27,981
8,646
-15,024
35,129
FY13
2,163
24,578
26,740
26,740
38,793
-15,761
23,032
2,053
5,480
17,826
2,048
64,685
25,270
8,335
17,079
14,001
88,385
41,336
34,073
12,975
-23,700
26,740
FY14
2,163
30,608
32,771
32,771
41,706
-17,409
24,298
3,121
6,362
24,580
1,617
70,007
27,475
8,164
22,210
12,158
97,214
49,115
30,558
17,540
-27,206
32,771
0
(INR Million)
FY15
2,164
35,084
37,248
37,248
44,306
-19,731
24,575
4,790
6,541
26,238
1,960
72,236
26,027
7,829
25,376
13,005
99,093
48,515
29,828
20,749
-26,857
37,248
0
FY16
2,164
60,627
62,791
62,791
50,774
-21,627
29,147
3,860
3,190
24,606
1,672
76,658
25,284
10,645
27,588
13,141
76,342
51,575
2,344
22,424
316
62,791
0
FY17E
2,164
58,399
60,563
60,563
53,774
-25,547
28,227
3,860
3,190
24,975
2,494
75,674
25,267
11,165
25,710
13,531
77,857
49,895
3,245
24,717
-2,184
60,563
0
FY18E
2,164
56,047
58,210
58,210
55,774
-29,491
26,283
3,860
3,190
26,975
2,694
79,124
27,670
12,035
25,517
13,902
83,916
54,086
2,866
26,964
-4,792
58,210
0
FY19E
2,164
55,789
57,953
57,953
57,774
-33,465
24,309
3,860
3,190
28,975
2,910
88,182
30,835
13,412
29,650
14,284
93,473
59,959
2,068
31,445
-5,291
57,953
0
23 January 2017
7

Hindustan Unilever
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Debtor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
FY12
11.9
12.9
16.3
7.5
63.0
FY13
14.7
15.8
12.4
18.5
125.5
FY14
16.4
17.6
15.2
13.0
79.1
439
FY15
16.9
18.2
17.2
15.0
88.9
495
FY16
19.0
20.5
29.0
16.0
84.0
501
FY17E
19.3
21.1
28.0
19.0
98.6
559
FY18E
21.5
23.3
26.9
20.5
95.3
645
FY19E
24.8
26.7
26.8
22.5
90.7
72.5
66.9
8.5
56.1
53.1
0.9
58.6
54.5
7.3
46.1
69.8
2.1
52.5
48.9
6.7
41.1
57.0
1.5
51.2
47.4
6.1
35.2
50.1
1.7
45.3
42.1
6.0
32.1
29.7
1.9
44.8
41.0
5.9
31.4
30.8
2.2
40.1
37.0
5.4
28.5
32.1
2.4
34.8
32.4
4.9
24.7
32.2
2.6
83.4
99.6
237.7
11
6.2
103.1
121.8
367.2
12
9.4
119.5
141.6
1,947.5
11
8.4
104.3
140.6
4,018.2
9
8.1
82.4
108.1
262.9
13
4.9
67.6
88.5
135.6
13
5.1
78.4
102.0
158.7
13
5.8
92.5
120.9
209.7
13
6.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Int./Div. Received
Depreciation
Interest Paid
Direct Taxes Paid
(Incr)/Decr in WC
CF from Operations
Extraordinary Items
(Incr)/Decr in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from Invest.
Change in Networth
change in equity
change in reserves
Dividend Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
FY12
33,502
-2,783
2,183
12
-7,769
4,353
29,498
1,189
404
29,903
-11,775
-10,182
459
2
457
-18,839
1,080
-17,300
2,016
16,285
18,300
FY13
43,495
-6,069
2,360
252
-11,518
7,454
35,974
6,084
-3,048
32,926
1,076
4,112
201
1
200
-46,557
5,049
-41,307
-1,222
18,300
17,079
FY14
47,997
-6,210
2,606
360
-12,196
8,638
41,195
3,122
-3,981
37,213
-7,635
-8,494
85
0
85
-32,730
5,075
-27,570
5,131
17,079
22,210
FY15
55,231
-6,184
2,867
168
-19,060
2,816
35,839
6,643
-4,269
31,569
-1,838
536
137
1
136
-38,812
5,467
-33,208
3,166
22,210
25,376
FY16
59,096
-5,006
3,208
2
-18,231
-24,960
14,108
-390
-5,537
8,571
4,983
-945
26,298
0
26,297
-41,578
4,330
-10,950
2,213
25,376
27,589
FY17E
59,970
-5,534
3,921
170
-17,691
621
41,456
0
-3,000
38,456
-369
-3,369
4,196
0
4,196
-48,103
3,942
-39,965
-1,878
27,588
25,710
(INR Million)
FY18E
66,498
-6,098
3,944
170
-19,285
2,415
47,644
0
-2,000
45,644
-2,000
-4,000
3,001
0
3,001
-51,901
5,063
-43,837
-193
25,710
25,517
FY19E
76,724
-6,645
3,974
170
-22,250
4,632
56,605
0
-2,000
54,605
-2,000
-4,000
3,001
0
3,001
-56,965
5,492
-48,472
4,133
25,517
29,650
23 January 2017
8

Hindustan Unilever
Corporate profile
Company description
HUL is the largest company in the FMCG industry,
with market leadership in soaps, detergents and
personal care categories. The company is a
subsidiary of Anglo Dutch FMCG giant Unilever. It
has over 35 brand spanning 20 distinct categories;
the company is a part of the everyday life of
millions of consumers across India. It has strong
brands, with market leadership in most of the
categories it operates in. It has a large distribution
network with direct reach of over 1m retail
outlets.
Exhibit 2: Shareholding pattern (%)
Dec-16
Promoter
DII
FII
Others
67.2
5.8
13.1
13.9
Sep-16
67.2
5.2
13.8
13.8
Dec-15
67.2
5.0
13.9
13.9
Source: Capitaline
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 3: Top holders
Holder Name
LIC of India
NA
NA
NA
NA
% Holding
1.6
0.0
0.0
0.0
0.0
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Harish Manwani
Sanjiv Mehta
P B Balaji
Dev Bajpai
Designation
Chairman
Managing Director &
CEO
ED (Finance & IT) and
CFO
Company Secretary
Exhibit 5: Directors
Name
Aditya Narayan
O P Bhatt
Sanjiv Misra
Name
Kalpana Morparia
S Ramadorai
Pradeep Banerjee
*Independent
Source: Capitaline
Exhibit 6: Auditors
Name
BSR & Co LLP
RA & Co
Type
Statutory
Cost Auditor
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
19.3
21.5
Consensus
forecast
21.2
24.1
Variation (%)
-8.9
-10.8
Source: Bloomberg
Source: Capitaline
23 January 2017
9

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