Short to medium term reversal can be expected.
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Huge volumes last month in the past 12 years. Also there seems to be a bearish divergence in RSI? Does this mean we are embracing for a downfall?
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This volume spike probably is the bulk deal to accomodate GSK stock swap deal IMO
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HUL Annual Report Analysis by Nirmal Bang
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Hi, which tool are you using to generate the above graphics?
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@Surender
Excellent graphics. However, would it be possible also to put summary paragraph along with Excel sheet (which would contain all the graphs)? Just a suggestion as I got lost in going through graphic and not able to get key points which you wanted to communicate. Please appreciate this is my limitation and by no mean I wanted to underrate your efforts.
Thanks once again.
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• Thanks @dd1474 for ‘HONEST’ feedback. Fair point. I was biased that the pictures are self-explanatory and will help anyone beyond me.
What’s the purpose of these graphics?
It’s a step towards improving my ability to understand 10 years number in a comprehensive and quick manner across companies in an industry and generate a set of additional questions that I should look for while reading the ARs else I get lost in 1000’s of pages (in parsing 10 years ARs) during the understanding phase of the analysis.
How about sharing the spreadsheet?
Shared a copy for HUL. But, it may not be re-usable for other stories as the graphs are incoherent and clumsy to keep them manageable & thousands of formulas transform the input data to achieve the final graphics. There are manual interventions that I need to do as it’s still a WIP tool and was crudely put together for self-use. Since I shared, I must tell that the Input data on the sheet named ‘GUI-Data’ comes from ‘Screener.in’ which one can override as per AR details. On sheet named as ‘Executive-Summary’, both CMP and Adj. Share count entries are manually filled as Screeners GUI does not show them.
HUL_Graphics_Share_VP.xlsx (150.2 KB)
• Here are the graphics with my understanding from them. Let me know incase you/anyone else sees more than what I have listed. Trust that it helps and admin does not mind a repeat:
Some graphics are repetitive. For example, last 2. The idea is to see the bigger picture in a block of 5 years besides YoY trend.
Note: I request your feedback, via message in case it’s not value additive for the story, as the same will help to improve the WIP tool.
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Appreciate your message and particularly taking my message in right spirit. Every individual has customise way to look at situation and hence everyone is correct. I am personally not a big fan of visual and image. In past, while working as analyst, one thing I learnt is by changing axis on the graph, we can project very deceptive pitcutre. As it is correctly said, image is better communicator than thousand WORDs but not for a single NUMBER. By changing axis scale, even no related variable can be shown as related variable. Even Correlation coeficient say 0.6 times (which mean very low relation) we can show exceptional good relationship. Hence, I trust numbers more than images.
As already said, it is my approach and it is was suit me but shall not be applicable for others. So if you find, this graphs as good way to find out odd pattern and seek details on those parameters. So my comments are useful to me only. The only reason to put this message was since you suggested my view, I thought to share it, even though I know it is may not applicable to larger audience.
Once again thanks for your kind word and wish all of us a happy investing journey !!!
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The acquisition announced in late March is now complete !!
“VWash acquisition is strategic and gives us an entry into rapidly growing female intimate hygiene segment. It enables us to serve consumer needs through scientific solutions. This acquisition is also timely given heightened focus on health and hygiene,” HUL Chairman and Managing Director Sanjiv Mehta said.
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With this acquisition, HUL is looking to scale up the brand by building awareness, driving penetration, leveraging distribution and enhance offering for chemist channel.
Although VWash website lists only the intimate wash and the intimate wipe, there are two other products in its stable according to Amazon brand page:
VWash Bikini Line Hair Removal Cream & VWash Wow Sanitary Napkins.
It is obvious that HUL will have these products too in its stable.
Sanitary Napkins, I feel is the most lucrative segment as the market size is much bigger than other categories of VWash.
Only problem is that VWash has brand strength in the Hygiene wash category only!
Although, VWash Wow Sanitary Napkins have good quality (as it seems from reviews), they lack any substantial brand power compared to Whisper, Stayfree, Kotex or Sofy. Glenmark did launch some advertising campaigns (Link 1, Link 2).
Motilal Oswal’s initiating coverage review on PGHH (published on 2016) examines the competitive intensity in this segment in detail (page 9-12).
So, this segment is characterized by strong brand moat although sustained promotion can create a dent, as happened in case of Sofy.
HUL can surely do the extensive campaigns, plus its WiMi and Project Shakti led deep penetrations may just help them to reach more places.
HUL isn’t actually new at promoting sanitary pads, as they had a 22 year old JV with Kimberly-Clark (1995-2007) during which they used to promote the Kotex brand of sanitary pads. Globally Unilever don’t have any Sanitary Pad brand.
PS: The Motilal Oswal report talks about a Wow sanitary napkin brand owned by future retail (private label probably). I’m not sure whether Glenmark acquired the brand rights from them because there is just no such reports. However, Glenmerk’s 2018-19 annual report, Page 42, mentions that “VWash WOW sanitary napkins were introduced as an extension to the VWash franchise”.
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Emami, the maker of the ‘Fair and Handsome’ brand of men’s grooming products, has taken strong exception to the decision of competitor HUL to rename its skincare product Fair & Lovely as Glow and Lovely because of the similarity in names. The company said it is the market leader in the men’s fairness cream with legal ownership of the trademarks. “We have already launched a week back our brand ‘Emami Glow & Handsome’ digitally and necessary application has already been made to the relevant authorities.”
I wonder what HUL did when Emami launched ‘Fair & Handsome’ which sounds similar with ‘Fair & Lovely’.
Previous battles were won by Emami: Emami wins 'Fair and Handsome' TVC case, Marketing & Advertising News, ET BrandEquity
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They will be prepared it seems. 
Watson, the game is on ! :
Hi, I am have a question regarding HUL transferring general reserve to P&L.
Reserve (general and retained earning) are generally non cash transaction and how come HUL is transferring general reserve money to P&L and distributing to shareholders ?
Interesting insight on TV Ad spends by HUL & its competitors in last 03 months :
HUL leading the pack as always with 100+ brands.
Disc : Invested in HUL & ITC in my satellite portfolio
This is an interesting development, also I fail to understand, how come a company like HUL can make such a mistake.
They were issues such notice in June as well. Definitely not a good sign.
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unilever-group-subsidiaries-2018-2_tcm244-508667_en.xlsx (63.5 KB)
Unilever Subsidiaries all over the world , nearly 500+ Globally
Courtesy : Mr Venkatesh Jayaraman
Some key take aways from Q2 results -
Foods segment revenues ( without including the GSK element ie Horlicks, Boost ) - grew by 19 pc - very impressive. This despite the slowdown in out of home consumption leading to sharp fall in Ice Cream sales
Domestic revenue growth ( without GSK ) up 3 pc vs ( - ) 7 pc in Q1 - again, impressive
Management - indicated launch of exciting products / innovations under the Horlicks / Boost brands. Here…I would say that I am really hopeful. GSK was doing a lousy job when it came to Brand extension into adjacencies - like failed attempts at Horlicks gulucose biscuits etc. I really think that Horlicks and Boost do command a lot of brand equity and HUL can drive home the advantage. FINGERS CROSSED !!!
Beauty and Personal care - reported flat revenues, when the discretionary brands ( like cosmetics, deos etc ) have de-grown by 25 pc
Double digit growth in - oral care, skin clensing, hair care
Disc : invested
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We use Junior Horlicks (Stage 2) for my kid. Yearlier GSK was selling it @ MRP 272. Now HUL reduced price by 40 and selling at MRP 229. But the problem is it is just not available anywhere. Earlier in DMART, the Horlicks counter was filled to the brim - now that counter itself is not there! Even online, In Amazon or Bigbasket it is not available. Sometimes in Medical stores I am finding 6 - 9 month old products.
I don’t know if it is due to COVID or they are clearing old stocks.
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