My thoughts on HUL
-
“Fill it, shut it, forget it” kind of stock. Hardly needs any maintenance
-
Available at a price last seen in May, 2020
-
HUL already seeing decade-high market share gains, smaller competitors to see greater pain due to raw material inflation
-
Last 3 years profit growth 16% and stock price growth 5%. Gives further comfort on valuation
-
One of the few listed MNCs in India not having unlisted subsidiaries.
Even Nestle introduced pet food through unlisted subsidiary
-
The narrative seems to be that HUL stock price is going down due to inflation and fears of inflation. I think this is just a case of narrative following price. Weren’t FMCGs supposed to be a good bet (especially large ones like HUL) in inflationary scenario due to their ability to pass on costs
-
Thing to take care of. Go a bit slow since 50dma has recently gone below 200dma. Momentum is an important factor in the time period upto 1 year.