The Motley Fool

Why India Is Great News For Shareholders In Unilever Plc

Recent news flow coming out of India has not been particularly positive. There have been a series of disappointing results from companies providing capital goods to India’s power and infrastructure sectors, with the latest being Bharat Heavy Electricals, which reported far weaker earnings than expected.

Of course, India’s Prime Minister remains upbeat and is talking about all sorts of reforms the country can make. The mood, however, is negative.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

However, all of this does not put me off the India growth story and certainly does not dampen my enthusiasm for Unilever (LSE: ULVR) (NYSE: UL.US).

Certainly, India is experiencing a difficult time and is not performing quite as well as many investors would have hoped. But it still offers boundless potential, especially for consumer goods companies such as Unilever.

As mentioned, the company has a two-thirds stake in Hindustan Unilever and this gives it access to the highly lucrative Indian market. Indeed, Unilever is perfectly positioned to benefit from a country where over one billion are gradually starting to use more and more consumer goods. For instance, sales of health and beauty products, washing powder and cooking sauces are increasing at a rate that developed markets can only dream of, with Unilever building up a loyal customer base through its trusted brands such as Dove, Knorr and Vaseline.

Sure, there will be highs and lows during this period of growth, and there will inevitably be periods when growth rates are less than expected. However, the trajectory is upwards and the growth potential is compelling.

Of course, to access such potential, one must be willing to pay for it. Unilever currently trades on a price-to-earnings ratio of 21, which may at first seem very high. However, earnings per share are expected to grow at around 10% per annum in each of the next two years and, with there being such vast long-term potential, I think the significant premium is well worth it.

If, like me, you are keen on finding the most exciting growth stocks then I would recommend you take a look at this exclusive report, which provides you with another compelling growth opportunity.

The report is completely free and is best described as The Motley Fool’s Top Growth Stock Of 2013.

> Peter does not own shares in Unilever. The Motley Fool has recommended shares in Unilever.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.