On A Winning Streak

Strategies such as localisation as well as premiumisation and An Entrepreneurial Work Culture Have Enabled Hul become the fifth most valuable company in bt 500.

- Ajita Shashidhar

THE 35,218 CRORE-FMCG BEHEMOTH, Hindustan Unilever, is on a high. Not only has the company’s average market capitalisation seen a close to 50 per cent jump in the past year (from 2,10,631 crore during the October 2016-September 2017 period to 3,15,599 crore in the October 2017-September 2018), it has made it to the top five of India’s most valuable companies (in terms of market cap) after a span of 14 years. After dipping to an all-time low of No. 20 (most valuable company) in 2011, HUL’s market cap had been wavering between the 12th and 13th slots of the “Business Today Most Valuable Companies” list for quite some time. It made it to the top 10 in 2016 and jumped to No. 9 last year. The FMCG major has seen the biggest jump in rank among the Top 10, moving up four places.

HUL has been showing double-digit volume growth for the past several quarters. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins have shot up from 15 per cent in fiscal 2012 to 21 per cent in fiscal 2018. The company’s stock price has shot up from 619.30 (October 1, 2013) to 1,584 (October 22, 2018).