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Hindustan Unilever (HUL) is the ‘Employer of Choice' for Class of 2012 of
B‐schools, ahead of other consumer biggies like P&G and ITC, as per a
survey by research firm Nielsen. Consumer sector remains the most
preferred sector with 36% respondents choosing it. HUL had been polled
‘Best Employer’ by Hewitt as well. The status is reflected in HUL’s salary
costs (5.1% of sales) being lower than peer set (Colgate: 8.4%; Dabur:
7.9%; ITC: 7.7%; Nestle: 6.9%). This can be attributed to its constant effort
on grooming the next generation of leaders, best leadership practices and
strong brands. The strategy helps the company negotiate better salary
deals and also bag and retain the best talent. Maintain ‘BUY’.
Hewitt poll also bestowed ‘Best Employer’ title
HUL was recently recognized as the ‘Best Employer in India in 2011’ in an extensive
nationwide study conducted by Hewitt, a global human resources consultancy.
Popularity imparts bargaining power aiding low cost of salary
Being the preferred choice of prospective employees imparts HUL superior bargaining
power, helping it trim employee cost; this is evident in reduction of staff cost as
percentage of sales from 5.8% in FY09 to 5.1% in FY11. Also, the company’s salary costs
at 5.1% of sales are lower than peer set (Colgate: 8.4%; Dabur: 7.9%; ITC: 7.7%; Nestle:
6.9%). It offers a high performing work environment and rich experience which help
attract and retain the best talent.
Outlook and valuations: Positive; maintain ‘BUY’
We believe HUL is achieving superior business results through better execution of
people programmes, more investments in high quality staff and lower staff costs. The
company has still not seen any significant signs of slowdown/downtrading. The stock is
trading at 33.2x and 29.3x FY12E and FY13E EPS, respectively. We maintain ‘BUY’ with
‘Sector Outperformer’ rating on relative return basis.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Hindustan Unilever (HUL) is the ‘Employer of Choice' for Class of 2012 of
B‐schools, ahead of other consumer biggies like P&G and ITC, as per a
survey by research firm Nielsen. Consumer sector remains the most
preferred sector with 36% respondents choosing it. HUL had been polled
‘Best Employer’ by Hewitt as well. The status is reflected in HUL’s salary
costs (5.1% of sales) being lower than peer set (Colgate: 8.4%; Dabur:
7.9%; ITC: 7.7%; Nestle: 6.9%). This can be attributed to its constant effort
on grooming the next generation of leaders, best leadership practices and
strong brands. The strategy helps the company negotiate better salary
deals and also bag and retain the best talent. Maintain ‘BUY’.
Hewitt poll also bestowed ‘Best Employer’ title
HUL was recently recognized as the ‘Best Employer in India in 2011’ in an extensive
nationwide study conducted by Hewitt, a global human resources consultancy.
Popularity imparts bargaining power aiding low cost of salary
Being the preferred choice of prospective employees imparts HUL superior bargaining
power, helping it trim employee cost; this is evident in reduction of staff cost as
percentage of sales from 5.8% in FY09 to 5.1% in FY11. Also, the company’s salary costs
at 5.1% of sales are lower than peer set (Colgate: 8.4%; Dabur: 7.9%; ITC: 7.7%; Nestle:
6.9%). It offers a high performing work environment and rich experience which help
attract and retain the best talent.
Outlook and valuations: Positive; maintain ‘BUY’
We believe HUL is achieving superior business results through better execution of
people programmes, more investments in high quality staff and lower staff costs. The
company has still not seen any significant signs of slowdown/downtrading. The stock is
trading at 33.2x and 29.3x FY12E and FY13E EPS, respectively. We maintain ‘BUY’ with
‘Sector Outperformer’ rating on relative return basis.
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