General discussion about Hindustan Unilever Ltd.

15 May, 2018 12:39
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There are many factors to consider while investing in FMCG Industry. Few of which I would consider are -
1) Industry Outlook - A trending Industry is always a affirming factor to invest in a stock in that Industry. If you look at FMCG, with increasing consumer demand in India there are high hopes of growth from this sector

.2) Economy - FMCG sector is consumer facing. Hence macro factors like Domestic Output and Per capita Income majorly affect the perfomance of this sector.

3)CPI - Consumer Price Inflation may help you decide the future trend for FMCG stocks. Entry/exit points - The price at which you enter a stock is crucial to determine your profits. Entering at high level when stock is over valued will be redundant since you are looking to invest

4) Peer Comparison - Peer comparison is another factor where you need to compare if your script is performing better or worse than peers. You may need to reconsider investing in a peer company if it shows better potential. ( You can make use for valuation ratios for this.)

PS- Different investors look for different factors based on their investing framework.
Edited 15 May, 2018 12:44


13 Apr, 2018 16:35
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The company currently is debt-free. The company enjoys a highest market cap in the industry. However would like to know what all things to consider while picking a FMCG stock?

 
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