In Monday’s trading session, the shares of one of the Auto ancillary stocks specializes in manufacturing a wide range of products across multiple categories in focus as it is in talks to acquire Skincare Brand Minimalist at a valuation of Rs. 3,000 Crore.
Price action
With a market capitalization of 5,65,194 Crores on Monday, the shares of Hindustan Unilever Limited is down by 1.3 percent making a low of Rs 2368.10 compared to its previous closing price of Rs 2405.50.
What happened
Hindustan Unilever Limited specializes in manufacturing a wide range of products across multiple categories, including food and beverages, personal care, and health and wellness.
Hindustan Unilever (HUL) is in advanced talks to acquire D2C skincare brand Minimalist at a valuation of Rs. 3,000 crore. Minimalist is known for its ingredient-based skincare products and has previously raised funds from Unilever Ventures and Sequoia Capital India.
HUL is expected to finalize the deal to acquire Minimalist in Q4FY25, aiming for majority control of the company and the founders, Mohit and Rahul Yadav, may retain some stake. The deal is likely to be valued at 8-10 times the brand’s revenue, which was Rs. 347.4 crore in FY24, up from Rs. 183.8 crore in FY23.
About the company
Hindustan Unilever Limited (HUL) is one of India’s largest and most renowned fast-moving consumer goods (FMCG) companies. HUL specializes in manufacturing a wide range of products across multiple categories, including food and beverages, home care, personal care, and health and wellness.
The company is known for its iconic brands such as Dove, Lux, Lipton, Surf Excel, Rin, and Vaseline, among many others. With a strong focus on quality and innovation, HUL has consistently maintained its leadership position in the Indian market by offering products that cater to the diverse needs of consumers.
Revenue segmentation
Hindustan Unilever Limited (HUL) sees significant revenue contributions across various sectors. The Home Care division leads with Rs. 21,900 crores, accounting for 36.2 percent of the total revenue. The Beauty and Personal Care segment follows closely with Rs. 22,165 crores, making up 36.6 percent. The Foods and Refreshment category contributes Rs. 15,292 crores, or 25.4 percent, while the Others segment adds Rs.1,112 crores, which is 1.8 percent of the total revenue.
Shareholding Pattern
Hindustan Unilever Limited has a diverse ownership structure, with promoters holding 61.90 percent, Foreign Institutional Investors (FIIs) at 12.18 percent, Domestic Institutional Investors (DIIs) at 14.18 percent, and the public owning 11.74 percent.
Financials
The company’s revenue rose by 2.14 percent from Rs 15,806 crore to Rs 16,145 crore in Q2FY24-25. Meanwhile, Net profit declined from Rs 2,656 crores to Rs 2,591 crore during the same period.
Key Financial ratios
Hindustan Unilever Limited (HUL) has an impressive Return on Equity (RoE) of 20.22 percent and a Return on Capital Employed (RoCE) of 24.61 percent. Furthermore, the company’s debt-to-equity ratio is 0.03.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
