Here's why HUL is pick of the week | Buy or Sell

Hindustan Unilever is the largest FMCG player in India. The company has one of the largest distribution network in FMCG sector serviced by over 3500 distributors. Strong business model and deep distribution network enables HUL to manage cyclical downturns in a better way. HUL is better placed to wade through cyclical downturns following its robust processes and its balanced strategy of tactically prioritising topline and bottom-line growth by offering consumer value by keeping a check over costs. GSK Consumer merger with HUL will be hugely value accretive for HUL.

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[brajeshsingh]

HUL has been one of the most disappointing FMCG companies. Given its profile, legacy, history and its market position it could have been one of the most profitable companies to invest in India. Instead it has barely been a market performer at best. The reason is HUL invests in too many businesses and brands. From water purifier to tea to noodles to even Atta if I am not mistaken. That has made HUL a under performer. The same is true of ITC. Too many businesses in one company. Look at Nestle, it has focused on food and beverages and it has outperformed the Sensex. Even Procter and Gamble has done better because its focus has been limited. Just my opinion.