FMCG giant Hindustan Unilever (HUL) reached a market capitalization of Rs. 6 trillion on Friday. Hindustan Unilever is the fifth company to reach this milestone after Reliance Industries, Tata Consultancy Services Ltd, HDFC Bank, and Infosys.
The company’s share prices hit an all-time high of Rs. ₹2,580 on BSE. In the past week, HUL’s share prices rallied almost 7 per cent and saw a gain of 2.8 per cent in the S&P BSE FMCG index. The prices surged almost 18% in the last year.
As per its April-June quarter(Q1FY22) results the company’s hygiene and nutrition portfolio saw a healthy growth of 8 per cent YoY while HUL’s overall sales increased by 13%.
“The company saw market share gain across all three segments, including its premium products. The e-commerce business has now doubled, with around 10 per cent of the company’s business being driven by digital platforms. We expect current Ebitda margin to sustain for FY22.” Analysts at HDFC Securities said in a statement.
“The performance in the coming quarters depends on a steady pickup in consumer demand, especially in the rural areas, which itself would rely on a good monsoon. Inflationary pressure on inputs may require further passing-on of costs to the consumers to sustain margins”, said Geojit report to its investors.” Geojit stated in its report.
According to LiveMint, the company’s management said that the near-term demand outlook remains challenging due to restricted consumer mobility, however, it expects rural demand to be stronger.
