Hindustan Unilever Limited (HUL), giant FMCG company in India has become India’s third most valuable FMCG company.
India’s most valuable consumer goods maker, Hindustan Unilever Limited (HUL), has overtaken HDFC Bank to become India’s third-most valuable FMCG company in terms of market capitalization.
The company has a market capitalization of ₹4.66 lakh crore and pips HDFC Bank to 3rd spot in market capitalization.
While the lender has lost about 36%, Hindustan Unilever has gained 11%. Tata Consultancy Services (TCS) and Reliance Industries remained at the top with market capitalisation of ₹6.21 lakh crore and ₹6.83 lakh crore, respectively.
The Indian subsidiary of UK’s Unilever, HUL’s market capitalization was Rs 4.66 trillion, against HDFC Bank’s Rs 4.46 trillion at Friday’s closing price.
HUL has been one of the top-performing stocks during the sell-off triggered by the global spread of the COVID-19 coronavirus pandemic.
The market capitalization of the company had declined just 4.2 percent since February 20, when the broader markets began to fall over fears of global spread of the novel Coronavirus disease (COVID-19) pandemic and economic disruption.
In comparison, during the period, HDFC Bank was down 33.1 percent, while the Nifty50 stocks combined market capitalization was down 31.2 percent.
Analysts say this is because novel Coronavirus disease (COVID-19) pandemic’s impact was more on banks, compared with a mild impact on FMCG companies like HUL.
The head research & equity strategist at Systematix Group, Dhananjay Sinha said that HDFC Bank faces the risk of a spike in bad loans due to lockdown.
In contrast, pharmaceutical companies such as Sun Pharmaceuticals, Dr. Reddy’s Labs, Cipla, Intas Pharma, Cadila Pharmaceuticals and food and personal care products makers such as HUL, Britannia, Nestlé, and ITC have outperformed the broader markets by a wide margin.
HDFC Bank with an m-cap of Rs 2,987 billion now features at fifth position in the list by replacing Hindustan Unilever Limited, a fast moving consumer goods (FMCG) company from this prestigious club.