CMP: 395

Hindustan Unilever Limited manufactures branded and packaged consumer products including soap, detergent, personal care products and processed food. The Company also manufactures ice creams, cooking oils, fertilizers and hybrid seeds.

HUL is a good bet in large-cap FMCG space. Its currently trading at a P/E of 34 with excellent dividend yields of almost 2% in the last 12 months. Minimal liability and strong cash flows makes it a safe buy. Revenues have picked up from 13,717 Crores to 19,333 Crores in the last 5 years. Profits have risen from 1923 Crores to 2305 Crores in the same period. NPM has dipped from 14% to 12% over the last 5 years. FY12 so far has relatively outperformed in growth compared to last 5 years. Q3 advance tax paid by HUL has been very positive and the stock should stay bullish. Buy, accumulate on dips and hold for long term gains.