Market cap of FMCG major Hindustan Unilever Ltd (HUL) surpassed Rs 6 lakh crore for the first time after its stock hit a fresh 52 week high in yesterday’s trading session.
A rise in the HUL stock in the past three years except the last few months helped the FMCG giant cement its position as the country’s fifth most valuable company.
The stock of the fast moving consumer goods (FMCG) company was trading higher for the seventh straight day and gained over 10% in this period.
HUL Shares
The stock surpassed its previous high of Rs 2,531.50, touched on June 22, 2021, and was trading at its highest level since April 2020. It had hit an all-time high of Rs 2,614 on April 8, 2020.
HUL stock has gained 9.91% in the last 7 days. The large cap stock touched an intraday high of Rs 2628.85, rising 5.83% yesterday against previous close of Rs 2,484 on BSE.
The stock has gained 9.36% since the beginning of this year and risen 19.69% in one year. Total 1.70 lakh shares of the firm changed hands amounting to turnover of Rs 43.83 crore.
Financial Performance
In first quarter of the current fiscal, HUL posted a 10.7 per cent rise in its consolidated net profit at Rs 2,100 crore agaisnt Rs 1,897 crore profit in the April-June quarter of the previous fiscal.
Ebitda margin came under pressure shrinking 50 bps QoQ to 23.9% on deteriorated product mix and higher costs. Adjusted profit after tax declined 6.7% QoQ.
Net sales stood at Rs 11,966 crore, up 13.21 per cent, against Rs 10,570 crore in the corresponding period a year ago.
Comment from Motilal Oswal
“Despite the higher incidence of covid-19 cases in rural India compared to last year, the demand momentum remains resilient.
The expectation of a good monsoon should sustain this momentum. Urban demand is expected to see a strong rebound.
With discretionary demand back on the recovery path, mix improvements will play a major role in driving a gradual margin improvement sequentially.”
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