hul group 1

8/3/2019 hul group 1

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ABHINAV MALHOTRA

NISHANT SEHGAL

HIMANSHU BANSAL

SUPRIYA SHARMA

Submitted by

Section : I


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Company Background

Hindustan Unilever Ltd was incorporated as Lever Brothers India Ltdin 1922.

Two Unilever subsidiaries, Hindustan Vanaspati ManufacturingCompany and United Traders, were merged with Lever BrothersIndia in 1956 and the merged entity was rechristened 'HindustanLever Ltd'.

In June 2007, the company's name was changed to 'HindustanUnilever Ltd' to reflect its global identity.


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HUL made a host of acquisitions, mostly global, by parent

company Unilever. Prominent among them were:

1. Tata Oil Mills Company was merged with HUL in 1993.

2. Brooke Bond Lipton India was merged with the company in 1996

3. Lakme Lever, a 50:50 joint venture company for cosmetics, wasfinally sold by Lakme to the company in 1998.

4. Ponds India amalgamated with the company in 1998 afterUnilever globally acquired it in 1996.

5. International Best Foods was acquired in 2001 subsequent to theinternational acquisition of Best Foods, USA by Unilever.

6. in 2003, HUL acquired the cooked shrimp and pasteurisedcrabmeat business of the Amalgam Group of Companies.


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Ownership/Auditor/Registrar

OWNERSHIP : Unilever (F) Group

AUDITORS: Lovelock Lewes

REGISTRAR : Karvy computer share pvtLtd.


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Directors interest

Name of Director No of Shares Percentage holdingMr. Harish Manwani 22130 0.001

Mr. Douglas Baillie Nil NA

Mr. D. S. Parekh 38250 0.002

Prof. C. K. Prahalad Nil NA

Mr. Aditya Narayan Nil NA

Mr. S. Ramadorai Nil NA

Mr. D. Sundaram 22020 0.001

Mr. Nitin Paranjpe 12606 0.001

Mr. Sanjiv Kakkar 32680 0.002

Dr. R. A. Mashelkar Nil NA


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Key Indicators (16.07.08)

Closing price (Rs) : 215.4

EPS (Rs) : 8.2940

P/ E : 25.97 B/V per share (Rs) : 8.353

PB : 25.78

Market Capitalization (Rs crores) :46921.465

Beta : 0.66


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Analysis


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For the year ended

31st December.

2007 2006

Net sales 13717,75 12103,39

Other operational income 224,82 191,46

Total 13942,57 12294,85

Operating expenses (11832,05) (10455,33)

PBDIT 2110,52 1839,52

Depreciation (138,36) (130,16)

Interest income (net) 212,37 152,32

PBT 2184,53 1861,68

Taxation (415,47) (322,01)

PAT (before exceptional 1769,06 1539,67

Exceptional items (net of tax) 156,41 315,70

Net profit 1925,47 1855,37

Summarized Profit and Loss Statement


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3,842.363,563.162,361.902,795.421,527.10Total

100.6118.0632.4435.4763.01Unsecured loans

1,603.701,453.0624.537.1325.52Secured loans

Loan funds

1,917.941,871.922,084.842,502.141,220.82Reserves & surplus

-----Preference sharecapital

-----Share applicationmoney

220.12220.12220.12220.68217.75Equity share capital

Owner's fund

Sources of funds

Dec ' 03Dec ' 04Dec ' 05Dec ' 06Dec ' 07Year

Balance Sheet


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Uses of funds

Fixed assets

Gross block 2,669.08 2,462.69 2,375.11 2,314.22 2,141.72

Less:

0.67 0.67 0.67 0.67 0.67

Revaluation

reserve

Less :

1,146.57 1,061.94 989.61 891.08 846.09

Accumulated

depreciation

Net block 1,521.84 1,400.08 1,384.83 1,422.47 1,294.96

Capital work

185.64 110.26 98.03 94.42 73.84in-progress

Investments 1,440.81 2,522.22 2,148.72 2,229.56 2,574.93

Net current assets

Current

3,681.12 3,555.08 3,101.67 3,670.80 3,878.88

assets, loans

& advances

Contd.


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Net current assets

Current

3,681.12 3,555.08 3,101.67 3,670.80 3,878.88

assets, loans

& advances

Less :current

5,302.30 4,792.23 4,371.36 3,854.10 3,980.25

liabilities &

provisions

Total current

-1,621.18 -1,237.15 -1,269.69 -183.3 -101.37assets

Total 1,527.10 2,795.42 2,361.90 3,563.16 3,842.36


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Cash flow (Rs crore)

Dec ' 07 Dec ' 06 Dec ' 05 Dec ' 04 Dec ' 03

Profit before tax 2,184.53 1,861.68 1,604.47 1,505.32 2,244.95

Net cash flow-operatingactivity 1,680.11 1,594.82 2,018.13 1,301.60 1,476.48

Net cash usedin investingactivity 1,023.76 -197.95 386.16 315.04 -52.7

Net cash usedin fin. activity -2,921.34 -1,344.73 -2,748.25 -1,725.06 -1,559.98

Net inc/dec incash and

equivalent -217.47 52.15 -343.96 -108.42 -136.19Cash andequivalentbegin of year 418.33 364.79 698.99 806.46 942.66

Cash andequivalent endof year 200.86 416.94 355.03 698.05 806.46

Comparison Of Cash flows


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TREND OF EPS(1998-2007)

3.674.86

5.957.46 8.04 8.05

5.446.4

8.41 8.73

0

2

4

6

8

10

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

YEARS

EPSOFRE1@

EPS

Earning per share (EPS) of HUL has been a bit volatile as it dipped in 2004,but now It is in increasing trend and have reached 8.73rs per share(2007).There is 137.8% increase from 1998 to 2007. Earnings Per Share for the year2007 at Rs. 8.73, reflects the growth of Net Profit (after exceptional items)by 3.8%.


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TREND OF DPS(1998-2007)

2.22.9

3.5

5 5.165.5

5 5

89

0

5

10

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

YEAR

DPSOFRe1@

DPS

Dividend per share (DPS) dipped to 5rs in 2004 but now is on increasing trendand current figure is 9rs.It has increased by 309.1% from 1998 to 2007. TheBoard of Directors have recommended a final dividend of Rs. 3/- per share.Total dividend to the Shareholders for 2007 stands at Rs. 9/- per share, andincludes the interim dividend of Rs. 3/- per share paid in August 2007 and Rs.3/- per share paid in November 2007 as Special Platinum Jubilee Dividend to

commemorate the Companys 75th year of operations in the Country.


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TREND OF PAT(%SALES)

8.29.8

15.8 16.3

11 11.3 11.8 1213.111.5

0

5

10

15

20

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

YEAR

PAT/SALES(%)

PAT


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HUL SHARE PRICE ON BSE

213.9

216.55

197.25

143.5

204.75

181.75

223.65

206.35

225

166.35

0

50

100

150

200

250

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

YEAR

SHARE

PRICE

SHARE PRICE


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TREND OF MARKET CAPITALIZATION

47788

4657543419

31587

45059

40008

49231

45409

49513

36,525

0

20,000

40,000

60,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

YEARS

VALUE

MARKET CAPITALIZATION


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companies HUL COLGATE DABUR GILLETE GODREJINDUSTRIESLTD

1. P/E ratio

2. EPS

3. SALES

4. FACE VALUE

5. NET PROFIT MARGIN

6. LAST DEVIDEND

7. RETURN ONAVERAGE EQUITY

24.87

8.83

3793.34

1

12.58

300

122.97

24.25

3.67

534.30

1

15.07

75

61.58

21.57

17.04

407.60

1

15

700

142.84

37.97

21.58

148.43

10

20.17

75

39.58

40.63

3.57

154.66

1

12.69

125

10.16

COMPARISON


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December

-07December

-06 December-05 December-04 December-03

Operatingmargin

(%) 14.95 14.74 14.14 15.32 20.58

Gross profitmargin(%) 13.96 13.68 13.03 14.12 19.36

Net profitmargin(%) 12.58 14.94 12.42 11.68 16.84

PROFITABILITYRATIOS


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December-

07December-

06December-

05December-

04December

-03

Long term debt /Equity - - - 0.63 0.62

Totaldebt/equity 0.06 0.02 0.02 0.70 0.79

Fixed assetsturnover

ratio 5.64 5.35 5.11 4.69 5.19

LEVERAGE RATIOS


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Dec-07 Dec-06 Dec-05 Dec-04 Dec-03

Current ratio 0.69 0.74 0.70 0.95 0.97

Quick ratio 0.24 0.33 0.32 0.47 0.52

LIQUIDITY RATIOS


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Conclusion

After analysing the annual report,

the company shows great potential for the

future.Inspite of fall in EPS & DPS in

2004,now it has come to an increasing trend

which is a safe sign for investors.


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THANK YOU

hul group 1

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