High Scoring Large Cap stocks have outperformed low scoring stocks by 90% over last 4 years
Size: It is among the top 200 market size companies of india.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Growth: Good revenue growth. With 30.1% growth over past three years, the company is going strong.
Balance Sheet: Reasonably good balance sheet.
Smart Money: Smart money has been increasing their position in the stock.
Technicals: Bullish SharesGuru indicator.
Profitability: Recent profitability of 15% is a good sign.
Momentum: Stock has a weak negative price momentum.
Valuation | |
|---|---|
| Market Cap | 2.75 LCr |
| Price/Earnings (Trailing) | 78.28 |
| Price/Sales (Trailing) | 11.88 |
| EV/EBITDA | 50.15 |
| Price/Free Cashflow | 65.31 |
| MarketCap/EBT | 59.76 |
| Enterprise Value | 2.74 LCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 23.19 kCr |
| Rev. Growth (Yr) | 22.7% |
| Earnings (TTM) | 3.52 kCr |
| Earnings Growth (Yr) | 27.6% |
Profitability | |
|---|---|
| Operating Margin | 19% |
| EBT Margin | 20% |
| Return on Equity | 66.39% |
| Return on Assets | 26.39% |
| Free Cashflow Yield | 1.53% |
Growth & Returns | |
|---|---|
| Price Change 1W | -0.20% |
| Price Change 1M | 0.50% |
| Price Change 6M | 12.8% |
| Price Change 1Y | 16.4% |
| 3Y Cumulative Return | 9.8% |
| 5Y Cumulative Return | 10% |
| 7Y Cumulative Return | 14.4% |
| 10Y Cumulative Return | 16.6% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -623.68 Cr |
| Cash Flow from Operations (TTM) | 5.05 kCr |
| Cash Flow from Financing (TTM) | -3.18 kCr |
| Cash & Equivalents | 1.32 kCr |
| Free Cash Flow (TTM) | 4.22 kCr |
| Free Cash Flow/Share (TTM) | 21.87 |
Balance Sheet | |
|---|---|
| Total Assets | 13.36 kCr |
| Total Liabilities | 8.03 kCr |
| Shareholder Equity | 5.31 kCr |
| Current Assets | 4.59 kCr |
| Current Liabilities | 4.76 kCr |
| Net PPE | 6.29 kCr |
| Inventory | 2.57 kCr |
| Goodwill | 0.00 |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.00 |
| Debt/Equity | 0.00 |
| Interest Coverage | 28.12 |
| Interest/Cashflow Ops | 32.88 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 12 |
| Dividend Yield | 0.84% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | 0.00% |
Size: It is among the top 200 market size companies of india.
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Growth: Good revenue growth. With 30.1% growth over past three years, the company is going strong.
Balance Sheet: Reasonably good balance sheet.
Smart Money: Smart money has been increasing their position in the stock.
Technicals: Bullish SharesGuru indicator.
Profitability: Recent profitability of 15% is a good sign.
Momentum: Stock has a weak negative price momentum.
Investor Care | |
|---|---|
| Dividend Yield | 0.84% |
| Dividend/Share (TTM) | 12 |
| Shares Dilution (1Y) | 0.00% |
| Earnings/Share (TTM) | 18.25 |
Financial Health | |
|---|---|
| Current Ratio | 0.96 |
| Debt/Equity | 0.00 |
Technical Indicators | |
|---|---|
| RSI (14d) | 28.94 |
| RSI (5d) | 47.88 |
| RSI (21d) | 51.61 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Buy |
| SharesGuru Signal | Buy |
| RSI Signal | Buy |
| RSI5 Signal | Hold |
| RSI21 Signal | Hold |
| SMA 5 Signal | Buy |
| SMA 10 Signal | Sell |
| SMA 20 Signal | Sell |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
Summary of Nestle India's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Management Outlook:
Nestlé India remains committed to penetration-led volume growth, targeting rural (RUrban) expansion and premiumization. The company anticipates India's rising middle class and packaged food demand (currently 3-4x below peers) to drive long-term opportunities. Near-term challenges include commodity inflation (coffee +75%, cocoa +40-50%) and urban consumption slowdowns. Management is confident in mitigating cost pressures through operational efficiencies (Project Shark) and calibrated pricing, prioritizing volume retention. Investments in AI, digital transformation (51% media spend digital), and supply chain agility (quick commerce optimization) are key focus areas.
Major Points:
Question 1: "Given the lack of data that we have in the recent quarters, we have seen milk and nutrition category seems to have declined probably versus one was expecting it to be quite resilient. What is ailing the category? Is it competition? Is it consumption due to high prices? And if you can share any steps that you are taking to tackle it, any insights will be helpful, Sir."
Answer Summary: The decline in the milk and nutrition category is attributed to price inflation impacting consumer demand and competition from cooperatives. Nestlé India has reduced sugar content in baby food products and focused on scientific differentiation to address nutrition needs. The category's maturity and shorter consumer lifecycle compared to other segments also contribute to slower volume growth, but the company remains confident in recovery with strategic adjustments.
Question 2: "It appears that the price hikes in the recent past quarters have been quite modest, maybe a function of low volume growth and to avoid further pressure. If you can share, what is a quantum of price hike that is still required to protect margins or maintain margins? How should one think about pricing growth going forward?"
Answer Summary: Pricing decisions are category-specific, with coffee facing significant inflationary pressures (75% YoY cost increase). Nestlé prioritizes cost efficiencies (e.g., capacity expansion, procurement) over price hikes to mitigate margin pressures. Future pricing will depend on commodity trends, but hikes are expected to be lower than 2022"“2023 levels, except for categories like coffee where unrelenting inflation may necessitate adjustments.
Question 3: "When I see every FMCG company tries to balance channels through SKUs and discounting, how is Nestlé differentiating here? How is profitability and working capital in e-commerce vs. traditional trade?"
Answer Summary: Nestlé balances channels by curating promotions, managing SKU portfolios, and capping discounts to avoid channel conflict. E-commerce margins are comparable to traditional trade, with no significant profitability trade-offs. The company avoids over-reliance on quick commerce (8.5% contribution) to protect its core traditional trade (~80% sales), emphasizing fair terms and supply chain adaptability to meet evolving demands.
Question 4: "You vacated the Rs.10 price point in urban areas. Would you need it to revive growth? In confectionery, have you reduced grammage due to cocoa inflation?"
Answer Summary: The Rs.10 price point remains strategic in specific geographies and channels as a value pack, though not ubiquitous to prevent down-trading. In confectionery, Nestlé maintains value stability (e.g., grammage) despite cocoa inflation, focusing on product differentiation and regional affordability rather than compromising on pack size.
Question 5: "How are market shares trending in noodles, chocolates, and baby foods? What steps are taken to counter regional competition in noodles?"
Answer Summary: MAGGI noodles maintain ~60% market share despite regional competition and price pressures. Chocolates (KITKAT, MUNCH) hold the No. 2 position with growing wafer-based shares. Baby food shares remain stable, supported by innovation (e.g., no refined sugar). Regional strategies include localized activations, cluster-based targeting, and innovation to address competition.
Question 6: "What is the medium-term outlook for milk and nutrition volume growth? Does the category need macroeconomic improvements to recover?"
Answer Summary: Volume growth in milk and nutrition hinges on easing inflation, higher female workforce participation, and wage growth. Premium segments show resilience, while mid-tier faces pressure. Nestlé expects gradual recovery as affordability improves but acknowledges the category's inherent limitations (shorter lifecycle vs. staples) for high volume growth.
Question 7: "How will margins evolve given pricing pressures and investments in affordability? Is current profitability sustainable?"
Answer Summary: Nestlé aims to sustain operating margins (20"“21%) through cost efficiencies and calibrated pricing. Commodity volatility (coffee, cocoa, wheat) remains a risk, but current profitability reflects optimal balance between growth and margins. The company avoids sacrificing margins for growth but may absorb short-term hits if inflation escalates.
Question 8: "How is premiumization shaping innovation? Is Nestlé shifting to smaller bets over large launches?"
Answer Summary: Premiumization drives niche innovations (e.g., NESPRESSO, Pet Care), but Nestlé prioritizes core categories (60% of growth). Innovation focuses on smaller, scalable bets (6.5% sales contribution) rather than single large launches. The organization adapts via R&D, digital tools, and supply chain flexibility to manage complexity while protecting core brand investments.
Understand Nestle India ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| NESTLE S.A. | 34.28% |
| MAGGI ENTERPRISES LTD | 28.48% |
| LIFE INSURANCE CORPORATION OF INDIA | 6.14% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Nestle India against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| HINDUNILVR | Hindustan Unilever | 5.18 LCr | 66.3 kCr | -5.10% | -7.70% | 34.43 | 7.81 | - | - |
| ITC | ITC | 3.78 LCr | 92.34 kCr | 0.00% | -31.90% | 18.26 | 4.09 | - | - |
| BRITANNIA | Britannia Industries | 1.29 LCr | 19.38 kCr | -6.80% | -3.40% | 50.75 | 6.64 | - | - |
| TATACONSUM | TATA CONSUMER PRODUCTS | 1.18 LCr | 20.46 kCr | +1.20% | +3.60% | 76.18 | 5.75 | - | - |
| MARICO | Marico | 1.08 LCr | 13.81 kCr | +6.00% | +16.70% | 60.91 | 7.8 | - | - |
| DABUR | Dabur India | 79.39 kCr | 13.79 kCr | -0.80% | -6.80% | 41.87 | 5.76 | - | - |
Nestle India is a prominent Packaged Foods company, trading under the stock ticker NESTLEIND. The company boasts a market capitalization of Rs. 231,976.2 Crores.
Incorporated in 1959, and headquartered in Gurugram, India, Nestle India manufactures and sells a wide range of food products both domestically and internationally. Their product offerings include:
Milk products and nutrition: This encompasses dairy whitener, condensed and UHT milk, yoghurt, maternal and infant formula, baby food, and healthcare nutrition products.
Beverages: They provide both powdered and liquid options, including instant coffee and tea, as well as ready-to-drink beverages.
Prepared dishes and cooking aids: Nestle India offers items such as noodles, sauces, seasonings, pasta, cereals, and pet foods.
Confectionery products: This category consists of bar countlines, tablets, and various sugar confectionery products.
In the last 12 months, Nestle India reported a revenue of Rs. 20,042.4 Crores and demonstrated a profit of Rs. 3,363.3 Crores over the past four quarters. The company has also shown robust growth, achieving 35.2% revenue growth over the last three years.
Investors benefit from Nestle India's financial stability, as the company distributes a dividend yield of 1.35% per year, returning Rs. 32.5 in dividends per share in the past year.
This is an informational page just to provide a quick 'first look' at the stock. You must do your own deeper research. Know your risk appetite. Consult a SEBI-registered financial advisor before making any investment decisions.