Hindustan Unilever (HUL)

[Terrance]

@dd1474

HUL management has tendency to operate with lowest capital employed possible. They have in past, taken approval to utilise accumulated reserves for past years to be approved as dividend and optimise networth (hence capital employed). Since GSK accumulated reserve got added in networth, the networth got bloated. I would expect same to be distributed to shareholders as dividend over 2-4 years period. My understanding may be wrong.

Return on Net Worth, Return on Capital Employed and Debt Equity ratio have dropped in financial year 2020-21 on account of increase in shareholders’ equity pursuant to the merger of GSK CH.