Nice post, I think your 10 year profit vs stock growth cagr explains it already. Profit cagr of 12% and a stock cagr of 14. For company like HUL where there is no significant gap to be filled, stock cagr will mirror profit cagr over the LONG TERM provided there is mo downside risk due to derating amd neither upside risk due to market seing any significant gap to be filled in coming years…
HUL has infact done great as a business with 12% cagr profit growth last decade…and stock has beautifully given 14% with much less relative risk returns and a decent dividend yield as well.
I think these experts have been saying this since decades…they might as well buy the moment any volume recovery hint even comes…
Even after what not this decade, many fmcg still beyond 50 plus PE.
If they start quoting at 25 PE or so, I would worry about country more than stocks…and if country is doing fine its time to sell everything else and buy these…
Personally I see HUL as fairly valued at these levels…any uptick in expected growth may trigger a rerating…
Disc. very small tracking position in hul. significant holding in other fmcg hence biased. Not a buy sell recommendation and post only for academic purposes. Not eligible for any advice
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