The FMCG major, Hindustan Unilever, has outperformed Sensex by huge margin to get back into the elite club of top 10 companies with highest market capitalization in India.
HUL hit historic high of Rs 496 today, toppled ICICI Bank to become the country's 10th most valued firm in terms of market capitalization. HUL outperformed the Sensex during the past one year gaining 57% as compared to 2.4% rise in the benchmark Sensex.
However investors should stay cautious as the valuation is quite stretched. The company's shares are valued at more than 33 times based on FY-13 earnings while the benchmark index sensex is valued at around 15 times for the same financial year.