HUL Quick review

In my post on October 2, 2011 I wrote the following about HUL “You can see that HUL made a high of 324 rs in March 2000 and after consolidating between these levels since last 12 years HUL had given a fresh break out. I think HUL is going to move up sharply from current levels. Having said that I also want to point out that HUL like most other FMCG companies are trading at a very high valuation levels but as per charts it is all set to go higher.”

HUL has traded up sharply since then and today it had closed around 460 INR 41% since October. If we look at the current chart of HUL I think it will move up from here. I think HUL have the potential to go up to 550 levels in one year or so.

HUL Monthly chart

 

HUL has doubled its revenue since 2005. If we look at the revenue trend of HUL we can see that from 2001 – 2005 HUL had seen a de growth in revenue but since then Revenue have been growing at CAGR of 15%.

HUL revenue growth

 

Similarly operating profits for HUL have also shown an uptrend since 2005 and have grown at a CAGR of 16.50%. Last year Operating profit growth was 30% while revenue grew at 21%.

HUL Operating Profit UP by 132% since 2005

If we look at EPS and Revenue per share for HUL has shown a clear uptrend since 2004. If we look at P/E trend for HUL. HUL had traded at a high of 44X in 2005 -2006. Currently HUL trades at TTM P/E of 35X. Looking at the price chart I think it P/E multiple for HUL may continue to expand. Given that HUL earnings grows by 15% - 18% CAGR the stock may give handsome returns in years to come.

HUL Revenue and Sales have doubled since 2004