HUL | 2QFY2012 Result Update

November 1, 2011

HUL
Performance Highlights
(` cr) Revenue EBITDA OPM (%) PAT
Source: Company, Angel Research

NEUTRAL
CMP Target Price
2QFY11
4,681 563 12.0 526

`388 -

2QFY12
5,522 738 13.4 645

% yoy
18.0 31 134bp 22.6

Angel Est
5,345 672 12.6 599

% Diff
3.3 9.8 79bp 7.5

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

FMCG 84,748 0.5 393/264 232,070 1 17,481 5,258 HUL.BO HUVR@IN

HUL posted a strong set of numbers for the quarter, above our estimates. The companys top line grew by 18% yoy to `5,522cr (`4,681cr). Recurring earnings for the quarter grew by 22.6% yoy to `645cr, above our estimates. We remain Neutral on the stock. Key highlights during the quarter: HUL posted impressive top-line growth of 18% yoy, driven by healthy volume growth of 10% yoy. Overall, FMCG sales grew by 20% yoy, aided by 20.5% yoy growth in the home and personal care (HPC) business and 17% yoy growth in the foods business. The soaps and detergent (S&D) segment posted 21.8% yoy revenue growth, while its EBIT margin expanded by 65bp yoy to 12.4%. The packaged food business reported 20.9% yoy growth. The personal products segment grew by 18.2% yoy, registering the tenth consecutive quarter of double-digit volume-led growth. At the operating level, OPM expanded by 134bp yoy to 13.4%. During the quarter, HUL reduced its ad spends and other expenses and negated the affect of gross margin pressure. Outlook and valuation: Post 2QFY2012, we maintain our revenue and earnings estimates. We expect HUL to post a ~13% CAGR in its top line over FY2011-13E, largely aided by steady performance of the companys personal care and foods division (aided by innovations and higher ad spends), spike in detergents volume growth and modest performance of its soaps business (aided by brand re-launches). In terms of earnings, we expect HUL to post a ~17% CAGR. At the CMP of `388, the stock is trading at 29.2x FY2013E earnings. We see a limited upside in the stock price from current levels; hence, we maintain our Neutral view on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 52.5 12.1 17.7 17.7

Abs. (%) Sensex HUL

3m (4.6) 20.4

1yr (14.1) 31.9

3yr 78.6 75.0

Key financials
Y/E March (` cr) Net sales % chg Net profit (Adj.) % chg OPM (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 17,524 (13.4) 2,103 (15.9) 14.5 9.7 38.5 32.5 90.5 101.3 4.7 32.0

FY2011 19,401 10.7 2,099 (0.2) 12.2 9.7 36.4 31.9 80.5 88.5 4.2 34.6

FY2012E 21,865 12.7 2,523 20.2 13.6 11.7 33.3 26.8 87.5 93.1 3.7 27.2

FY2013E 24,637 12.7 2,877 14.0 14.0 13.3 29.2 23.3 85.3 93.6 3.3 23.3

Sreekanth P.V.S
022 3935 7800 Ext: 6841

[email protected]

Please refer to important disclosures at the end of this report

HUL | 2QFY2012 Result Update

Exhibit 1: Quarterly performance

Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Staff Costs (% of Sales) Advertising Expense (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Provision for Taxation (% of PBT) Recurring PAT PATM (%) Reported PAT Equity shares (cr) FDEPS (`)

2QFY12 5,522 3,001 54.3 287 5.2 651 11.8 844 15.3 4,784 738 13.4 1 57 166 847 44 891 16 202 23.9 645 11.7 689 216 3.2

2QFY11 4,681 2,383 50.9 245 5.2 646 13.8 843 18.0 4,118 563 12.0 0 55 161 668 40 709 15 143 21.3 526 11.2 566 218 2.6

% yoy 18.0 25.9 17.3 0.8 0.1 16.2 31.1 671.4 3.1 3.3 26.7 25.7 41.8 22.6 21.7 21.7

1HFY2012 11,026 6,075 55.1 574 5.2 1,284 11.6 1,676 15.2 9,609 1,417 12.9 1 113 292 1,595 103 1,699 15 382 24.0 1,213 11.0 1,316 216 6.1

1HFY2011 9,475 4,830 51.0 496 5.2 1,398 14.8 1,590 16.8 8,313 1,162 12.3 0 109 285 1,338 59 1,397 15 297 22.2 1,040 11.0 1,099 218 5.1

% chg 16.4 25.8 15.7 (8.1) 5.4 15.6 22.0 273.3 4.1 2.5 19.3 21.6 28.6 16.6 19.7 19.7

Source: Company, Angel Research

Revenue marginally above estimates, volume growth at 10%

HUL posted impressive top-line growth of 18% yoy, driven by healthy volume growth of 10% yoy. Overall, FMCG sales grew by 20% yoy, aided by 20.5% yoy growth in HPC and 17% yoy growth in foods businesses. In HPC, the S&D segment posted growth of 21.8% yoy. The strong growth was fuelled by price hikes. In detergents, all three brands Rin, Surf, and Wheel delivered double-digit volume growth. New variants of Comfort and Lux were launched during the quarter. The personal products segment registered 18.2% yoy growth, the tenth consecutive quarter of double-digit volume-led growth. In the foods business, all segments grew well, contributing to the companys growth (beverages grew by 14.6% yoy and packaged foods grew by 20.9% yoy).

November 1, 2011

HUL | 2QFY2012 Result Update

Exhibit 2: Double-digit top-line growth continues

6,000 5,000 4,000 20.0 15.0

Exhibit 3: Volume growth bounces to double digits

16 14 12 10 8 6 4 2 14 11 11 8 5 1 13 14 10

(` cr)

2,000 1,000 -

5.0 -

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

(%)

3,000

10.0

(%)

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

Top-line (LHS)

yoy growth (RHS)

Source: Company, Angel research

Source: Company, Angel research

Recurring earnings up by 22.6% yoy, margin expands

During the quarter, HUL posted a 22.6% yoy increase in its earnings to `645cr (`526cr) on a recurring basis. Although on a reported basis, earnings grew by 21.7% yoy. Depreciation and other income remained flat, whereas tax rate increased by 254bp yoy during the quarter.

Gross margin dips; OPM expands, offset by low ad spends

During the quarter, HULs OPM expanded by 134bp yoy. The company reported gross margin contraction of 344bp yoy. During the quarter, the company reduced its ad spend and other expenses by 202bp yoy and 273bp yoy, respectively. Staff cost for the quarter remained flat. All this helped the company offset gross margin pressure and improve its operating margin.

Exhibit 4: Earnings growth higher than expected

710 610 510 410 310 210 110 10 40.0 30.0 20.0 10.0 (10.0) (20.0) (30.0)

Exhibit 5: Margin remains a concern

60.0 50.0 40.0 30.0 20.0 10.0 14.4 16.0 12.3 13.4 12.0 12.4 11.8 10.3 11.7 49.3 50.9 48.6 45.7 49.1 48.9 45.7 44.1 45.7

`cr)

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

( %)

(%)

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

PAT (LHS)

yoy growth (RHS)

OPM

Gross margin

Source: Company, Angel Research

Source: Company, Angel Research

November 1, 2011

2Q12

HUL | 2QFY2012 Result Update

Exhibit 6: Segment-wise performance

Y/E March (` cr) Soaps & Detergents Personal Products Beverages Packaged Foods Exports Others Less: Inter Seg Rev Total Gross Income Soaps & Detergents Personal Products Beverages Packaged Foods Exports Others Total PBIT Less: Interest Exp Less: Other Unalloc Exp PBT PBIT Margin (%) Soaps & Detergents Personal Products Beverages Packaged Foods Exports Others
Source: Company, Angel Research

2QFY12 2,593 1,613 653 332 291 116 5,597 321 394 88 16 24 (8) 836 77 912 12.4 24.4 13.4 5.0 8.3 (6.7)

2QFY11 2,129 1,365 570 274 265 4,756 250 314 88 10 19 (18) 662 75 737 11.7 23.0 15.4 3.7 7.1 (12.0)

% chg 21.8 18.2 14.6 20.9 9.9

1HFY2011 5,148 3,243 1,262 704 597 223 11,177 557 807 163 34 48 (10) 1,599 116

1HFY2010 4,394 2,730 1,108 590 529 9,617 499 653 157 36 42 (45) 1,341 50 1,391 11.4 23.9 14.2 6.1 7.9 (16.9)

% chg 17.2 18.8 13.9 19.3 12.8

153 (24.0) 17.7 28.4 25.5 0.2 27.0 81.1

265 (16.1) 16.2 11.7 23.7 3.8 (5.7) 14.6 19.2

23.8

1,715 10.8 24.9 12.9 4.8 8.0 (4.7)

23.2

November 1, 2011

HUL | 2QFY2012 Result Update

S&D posts high double-digit growth, all brands perform well

HULs S&D segment registered 21.8% yoy growth, with all its key brands performing well. Competitive intensity in the category remained high as always. On account of price hikes, the segments EBIT margin expanded by 65bp yoy. The company launched new variants in Lux. Both Lux and Lifebuoy reported double-digit growth during the quarter.

Exhibit 7: S&D continues with impressive growth

3,000 2,500 2,000 25.0 20.0 15.0

Exhibit 8: High palm oil prices impact EBIT margin

350 300 250 200 150 100 50 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 -

(` cr)

(`cr)

(%)

1,500 1,000 500 -

10.0 5.0 (5.0)

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

Top-line (LHS)

yoy growth (RHS)

EBIT (LHS)

EBIT % (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Personal products continue to post double-digit volume growth

The personal products segment registered 18.2% yoy growth, the tenth consecutive quarter of double-digit growth. All skincare brands posted double-digit volume growth. Hair care and oral care also performed well, with hair care witnessing sustained double-digit volume growth. Toothpastes also performed well, with brands such as Close up and Pepsodent showing strong growth. Hence, the segments margin expanded by 143bp yoy to 24.4%.

Exhibit 9: Nine quarters of double-digit growth

350 300 250 200 150 100 50 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 -

Exhibit 10: EBIT margin expands by 143bp yoy

2,000 1,500 25.0 20.0

2Q12

(`cr)

(`cr)

(%)

1,000 500 -

10.0 5.0 -

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

EBIT (LHS)

EBIT % (RHS)

Top-line (LHS)

yoy growth (RHS)

Source: Company, Angel research

Source: Company, Angel research

Packaged foods segment registers 20.9% yoy growth

The packaged foods segment recorded 20.9% yoy growth, driven largely by strong growth in tea, coffee and ice creams. Also, Kissan and Knorr posted double-digit growth for the quarter.

November 1, 2011

2Q12

(%)

15.0

(%)

HUL | 2QFY2012 Result Update

Investment arguments
Increasing innovation and brand repositioning to accelerate growth: HUL has been very actively re-launching products from its existing brands and has increased the pace of new launches, targeting the mid/premium market segment (re-launched Lux, Lifebuoy and Vim in the personal products and the S&D categories, respectively). This, in our view, is positive, considering that the company will have a better control on pricing. Moreover, constant innovations have helped HUL stabilize its market share losses. However, we retain a slight caution against ITCs commitment to categories such as soaps, shampoos and skin care, which may pose a major threat to HUL in the long run. We model in an 8.5% and a 15.7% CAGR in the S&D and personal products segments revenue over FY2011-13E and expect margin to come in at ~12% and ~25% for S&D and personal products segments, respectively. Healthy domestic growth rates and strong balance sheet provide further impetus: HUL, with its iconic brands, has maintained its growth, which is impressive given the recent price hikes across categories and a strong competitive scenario, indicating a revival in consumer demand and higher growth in the mid/premium market segment. Moreover, HUL is a cash-rich, zero-debt company enjoying high RoE of ~75%. We have modeled in a recurring earnings CAGR of ~17% over FY2011-13E, though we expect the companys margin to be under pressure due to high input cost inflation.

Outlook and valuation

Post 2QFY2012, we maintain our revenue and earnings estimates. We expect HUL to post a ~13% CAGR in its top line over FY2011-13E, largely aided by steady performance of the companys personal care and foods division (aided by innovations and higher ad spends), spike in detergents volume growth and modest performance of its soaps business (aided by brand re-launches). In terms of earnings, we expect HUL to post a ~17% CAGR. At the CMP of `388, the stock is trading at 29.2x FY2013E earnings. We see a limited upside in the stock price from current levels; hence, we maintain our Neutral view on the stock.

November 1, 2011

HUL | 2QFY2012 Result Update

Exhibit 11: Peer valuation

Company Asian Paints Britannia Colgate Dabur GSKCHL GCPL HUL ITC Marico Nestle Reco Neutral Neutral Neutral Buy Neutral Accumulate Neutral Accumulate Neutral Neutral Mcap (` cr) 30,055 5,670 14,159 17,346 9,739 13,704 84,748 161,069 9,554 42,012 CMP (`) 3,133 475 1,041 100 2,316 424 388 208 156 4,357 TP* (`) 115 457 219 Upside (%) 16 8 5 P/E (x) FY12E FY13E 30.6 30.8 32.3 24.7 28.0 25.6 33.2 27.9 30.7 43.2 24.8 21.1 27.6 21.6 23.6 19.7 29.2 23.5 24.7 36.3 EV/Sales (x) FY12E FY13E 3.2 1.1 5.3 3.4 3.2 3.4 3.7 6.2 2.8 5.7 2.7 1.0 4.6 3.0 2.7 2.7 3.3 5.2 2.4 5.0 RoE (%) FY12E FY13E 39.6 37.8 111.7 44.9 32.6 36.6 87.5 32.7 30.4 91.1 38.3 46.0 108.0 41.6 31.8 29.4 85.3 31.5 28.6 72.9 CAGR # Sales PAT 17.3 17.3 14.9 20.5 17.3 22.9 12.7 17.6 15.7 16.1 19.8 36.0 12.9 18.8 17.5 20.2 17.1 17.4 27.6 18.9

Source: Company, Angel Research, Note: #denotes CAGR for FY2011-13E

Exhibit 12: Angel vs. Consensus estimates

Top-line (` cr) Angel estimates Consensus Diff (%)
Source: Company, Angel Research

FY2012E 21,865 22,277 (1.9)

FY2013E 24,637 25,167 (2.1)

EPS (`) Angel estimates Consensus Diff (%)

FY2012E 11.7 11.6 0.7

FY2013E 13.3 13.6 (2.1)

Exhibit 13: ReturnsHUL vs. Sensex (Indexed to 100)

140% 130% 120% 110% 100% 90% 80% 70% 60%
Dec-10 Apr-11 Jul-11 Mar-11 Aug-11 Nov-10 Feb-11 Oct-11 May-11 Nov-11 Sep-11 Jan-11 Jun-11

Exhibit 14: One-year forward P/E band

500 400

Share Price (`)

300 200 100 -

Dec-05

Dec-07

Dec-09

Apr-05

Apr-07

Apr-09

Aug-06

Aug-08

Sensex

HUL

15x

20x

25x

30x

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 15: One-year forward P/E chart

35.0 30.0 25.0 20.0 15.0 10.0 5.0 -

Exhibit 16: One-year forward Prem vs. Sensex chart

160% 140% 120% 100% 80% 60% 40% 20% 0% -20% -40%

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Feb-07

Feb-08

Feb-09

Feb-10

Feb-11

Oct-11

Jun-07

Jun-08

Jun-09

Jun-10

Jun-11

Dec-06

Dec-07

Dec-08

Dec-09

Aug-06

Aug-07

Aug-08

Aug-09

Aug-10

Dec-10

Aug-10
Apr-11

Source: Company, Angel Research, Note: Blue line indicates 5-year average

Source: Company, Angel Research, Note: Blue line indicates 5-year average

November 1, 2011

Aug-11

Apr-06

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

HUL | 2QFY2012 Result Update

Profit & Loss Statement

Y/E March (` cr) Gross sales Less: Excise duty Net Sales Total operating income % chg Total Expenditure Cost of Materials Advertising Exp Personnel Others EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of associates Less: Minority interest (MI) PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg
#

CY07 14,715 1,040 13,675 13,675 13.0 11,797 7,269 1,440 768 2,320 1,879 14.0 13.7 138 1,740 14.7 12.7 25 432 20.1 2,146 15.3 (182) 2,329 403 18.8 1,743 1,743 1,925 3.8 14.1 8.0 8.0 14.7

FY09# 21,650 1,410 20,239 20,239 48.0 17,583 10,810 2,131 1,152 3,490 2,656 41.4 13.1 195 2,461 41.4 12.2 25 590 19.5 3,025 40.9 4 3,021 524 17.3 2,501 2,501 2,496 29.7 12.3 11.5 11.5 43.3

FY10 18,220 696 17,524 17,524 (13.4) 14,975 8,878 2,391 936 2,770 2,548 (4.1) 14.5 184 2,364 (3.9) 13.5 7 350 12.9 2,707 (10.5) (99) 2,806 604 22.3 2,103 2,103 2,202 (11.8) 12.6 9.6 9.6 (16.0)

FY11 20,306 904 19,401 19,401 10.7 17,036 10,057 2,764 961 3,254 2,365 (7.2) 12.2 221 2,144 (9.3) 11.1 0 586 21.5 2,730 0.9 (207) 2,937 631 23.1 2,099 2,099 2,306 4.7 11.9 9.7 9.7 0.9

FY12E 22,895 1,030 21,865 21,865 12.7 18,893 10,977 3,170 1,104 3,642 2,972 25.7 13.6 247 2,725 27.1 12.5 0 553 16.9 3,277 20.0 0 3,277 754 23.0 2,523 2,523 2,523 9.4 11.5 11.7 11.7 20.1

FY13E 25,852 1,215 24,637 24,637 12.7 21,181 12,147 3,696 1,244 4,094 3,456 16.3 14.0 273 3,183 16.8 12.9 577 15.4 3,760 14.7 0 3,760 884 23.5 2,877 2,877 2,877 14.0 11.7 13.3 13.3 14.0

Note: FY2009 Results are for 15 months

November 1, 2011

HUL | 2QFY2012 Result Update

Balance Sheet
Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Total Assets
#

CY07 218 1,221 1,439 89 (212) 1,315 2,669 1,147 1,523 186 1,441 3,277 201 680 2,397 5,111 (1,834) 1,315

FY09# 218 1,844 2,062 422 (255) 2,229 2,882 1,275 1,607 472 333 5,601 1,777 758 3,066 5,784 (183) 2,229

FY10 218 2,365 2,584 (249) 2,335 3,582 1,420 2,162 274 1,264 5,368 1,892 624 2,852 6,733 (1,365) 2,335

FY11 216 2,418 2,634 (210) 2,424 3,760 1,590 2,169 299 1,261 6,095 1,640 701 3,754 7,400 (1,305) 2,424

FY12E 216 2,919 3,135 (210) 2,925 4,417 1,838 2,579 442 1,761 6,362 2,010 809 3,543 8,218 (1,857) 2,925

FY13E 216 3,393 3,609 (210) 3,400 4,879 2,111 2,768 488 2,261 6,952 2,042 924 3,985 9,068 (2,116) 3,400

Note: FY2009 Results are for 15 months

Cash Flow Statement

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Interest / Dividend (Net) Direct taxes paid Others Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Interest / Dividend (Net) Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances
#

CY07 2,146 138 122 (142) 403 (26) 1,836 (289) 998 709 (633) 16 2,292 (148) (2,762) (216) 417 201

FY09# 3,025 195 (330) (126) 524 (19) 2,220 (629) 1,167 538 39 333 1,677 (122) (1,181) 1,576 201 1,777

FY10 2,707 184 1,375 (117) 604 (67) 3,477 (502) (931) (1,434) 32 (422) 1,656 (117) (1,929) 115 1,777 1,892

FY11 2,730 221 (242) (190) 631 (416) 1,472 (203) 3 (199) (73) 0 1,642 (190) (1,525) (252) 1,892 1,640

FY12E 3,277 247 895 (167) 754 26 3,525 (800) (500) (1,300) 0 0 2,023 (167) (1,855) 370 1,640 2,010

FY13E 3,760 273 281 (187) 884 11 3,255 (508) (500) (1,008) 0 0 2,402 (187) (2,215) 33 2,010 2,042

Note: FY2009 Results are for 15 months

November 1, 2011

HUL | 2QFY2012 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Returns (%) RoCE Angel RoIC (Pre-tax) RoE Turnover ratios (x) Asset Turnover Inventory / Sales (days) Receivables (days) Payables (days) Net Working capital (days)
#

CY07 43.9 44.6 58.3 2.3 6.1 44.3 63.2 8.0 8.1 8.7 9.1 6.7 89.5 83.7 5.1 52 12 102 (54)

FY09# 33.9 31.1 40.7 1.9 4.1 31.3 37.3 11.5 11.6 12.5 7.5 9.5 138.9 142.9 7.0 46 10 77 (35)

FY10 38.5 36.7 32.5 1.7 4.7 32.0 34.9 9.6 9.7 10.6 6.5 12.0 103.6 90.5 4.9 45 14 110 (68)

FY11 36.4 36.2 31.9 1.7 4.2 34.6 33.8 9.7 9.7 10.7 6.5 12.2 90.1 80.5 5.2 53 18 114 (55)

FY12E 33.3 30.3 26.8 2.1 3.7 27.2 27.7 11.7 11.7 12.8 8.0 14.5 101.9 87.5 5.0 46 14 109 (65)

FY13E 29.2 26.6 23.3 2.4 3.3 23.3 23.7 13.3 13.3 14.6 9.5 16.7 100.7 85.3 5.1 46 13 106 (62)

Note: FY2009 Results are for 15 months

November 1, 2011

10

HUL | 2QFY2012 Result Update

Research Team Tel: 022 - 3935 7800

E-mail: [email protected]

Website: www. angelbroking.com

Disclaimer
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

HUL No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) :

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

November 1, 2011

11