Nestle India Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹2,46,371 crore, a PE ratio of 76.2, a debt-to-equity ratio of 0.10, and a return on equity (ROE) of 13%.5 These figures indicate the bank’s financial health and its ability to manage debt while delivering returns.
Content:
- Nestle India Ltd Overview
- Nestle India Financial Results
- Nestle India Financial Analysis
- Nestle India Company Metrics
- Nestle India Stock Performance
- Nestle India Peer Comparison
- Nestle India Shareholding Pattern
- Nestle India Ltd History
- How To Invest In Nestle India Ltd Share?
- Nestle India Limited Fundamental Analysis – FAQs
Nestle India Ltd Overview
Nestle India Ltd, a subsidiary of Nestlé S.A., operates in India with a focus on food and beverages. Established in 1912, it offers a wide range of products including dairy, coffee, and snacks, and contributes significantly to the local economy.
The company has a market capitalization of ₹2,46,371 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 7.78% below its 52-week high and 18.1% above its 52-week low.
Nestle India Financial Results
Nestle India Ltd financial results FY24 showed strong performance with sales at ₹24,394 crore and net profit of ₹3,933 crore, compared to FY22’s sales of ₹16,897 crore and net profit of ₹2,391 crore.
- Revenue Trend: Nestle India’s revenue increased from ₹16,897 crore in FY22 to ₹24,394 crore in FY24. Sales were ₹19,126 crore in FY23, reflecting consistent growth over the years.
- Equity and Liabilities: Equity capital stood at ₹96 Crores in FY24, with reserves increasing to ₹3,244 Crores. Total liabilities increased to ₹10,523 Crores from ₹8,979 Crores in FY23, indicating a growing financial base.
- Profitability: Operating profit grew from ₹3,713 crore in FY22 to ₹5,820 crore in FY24. The OPM% improved from 22% in FY22 to 24% in FY24, indicating enhanced profitability.
- Earnings Per Share (EPS): EPS increased from ₹247.94 in FY22 to ₹40.79 in FY24. Although there was a dip in FY23 to ₹31.1, the overall trend reflects strong earnings performance.
- Return on Net Worth (RoNW): The Return on Net Worth (RoNW) stands at 135% in FY24 and FY23, suggesting a stability in returns on shareholders’ equity.
- Financial Position: Nestle India’s financial position improved significantly, with net profit growing from ₹2,391 crore in FY22 to ₹3,933 crore in FY24, supported by increased revenues and effective cost management.
Nestle India Financial Analysis
| FY24 | FY23 | FY22 | |
| Sales | 24,394 | 19,126 | 16,897 |
| Expenses | 18,574 | 14,655 | 13,184 |
| Operating Profit | 5,820 | 4,471 | 3,713 |
| OPM % | 24 | 23 | 22 |
| Other Income | 152.33 | 115.5 | 101 |
| EBITDA | 5,968 | 4,592 | 3,814 |
| Interest | 145.49 | 119.29 | 154.57 |
| Depreciation | 537.78 | 428.91 | 403.01 |
| Profit Before Tax | 5,289 | 4,038 | 3,256 |
| Tax % | 25.64 | 25.74 | 26.58 |
| Net Profit | 3,933 | 2,999 | 2,391 |
| EPS | 40.79 | 31.1 | 247.94 |
| Dividend Payout % | 78.94 | 536.98 | 88.73 |
All values in ₹ Crores.
Nestle India Company Metrics
Nestle India Ltd has a market cap of ₹2,46,371 crore with a current price of ₹2,555. The stock shows a P/E ratio of 76.2 and an EPS of ₹33.6.
- Market Cap: Nestle India Ltd’s market cap is ₹2,46,371 crore, reflecting its significant market presence and valuation. This figure underscores its status as a major player in the industry.
- Book Value: The book value per share stands at ₹34.6, indicating the company’s net asset value per share.
- Face Value: The face value of Nestle India’s shares is ₹1.00. This nominal value is used to calculate dividends and for accounting purposes.
- Turnover: With an asset turnover ratio of 2.50, Nestle India efficiently generates revenue from its assets.
- PE Ratio: The price-to-earnings (P/E) ratio is 76.2, suggesting a high valuation relative to earnings.
- Debt: Nestle India’s debt stands at ₹345 crore, with a debt-to-equity ratio of 0.10, indicating a conservative approach to leveraging and a strong balance sheet.
- ROE: The return on equity (ROE) is 135%, showcasing the company’s ability to generate substantial profit from shareholders’ equity, and highlighting exceptional financial performance.
- EBITDA Margin: The EBITDA margin is 50.1%, indicating strong profitability before interest, taxes, depreciation, and amortization, and showcasing the company’s operational efficiency.
- Dividend Yield: Nestle India offers a dividend yield of 0.61%, providing a modest return to shareholders based on the current stock price, reflecting its shareholder returns strategy.
Nestle India Stock Performance
Over various periods, Nestle India achieved a 15% return on investment (ROI) over 5 years, 8% over 3 years, and 15% over 1 year, reflecting variable but positive performance across different time frames.
| Period | Return on Investment (%) |
| 5 Years | 15% |
| 3 Years | 8% |
| 1 Year | 15% |
Examples:
1. If A invested ₹1,00,000, a 5-year ROI of 15% yields ₹1,15,000.
2. For a ₹1,00,000 investment, a 3-year ROI of 8% results in ₹1,08,000.
3. A ₹1,00,000 investment with a 1-year ROI of 15% returns ₹1,15,000.
Nestle India Peer Comparison
The competitor analysis of Nestle India reveals a substantial market cap of ₹246,371 Crores. Compared to Britannia Industries and Swojas Energy, Nestle India shows strong performance with a 1-year return of 15.03%, highlighting its competitive edge in the sector.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | Nestle India | 2555.3 | 246371.05 | 3.9 | 3.4 | 15.03 |
| 2 | Britannia Inds. | 5830.65 | 140441.86 | 4.87 | 11.38 | 29.36 |
| 3 | Swojas Energy | 12.5 | 38.7 | -55.54 | -9.59 | 67.72 |
Nestle India Shareholding Pattern
The shareholding pattern of Nestle India Ltd as of June 2024 shows promoters holding 62.76%, foreign institutional investors (FII) with 11.94%, domestic institutional investors (DII) at 9.22%, and retail & others at 16.05%. There are slight variations in institutional and retail holdings over the past quarters.
| Jun 2024 | Mar 2024 | Dec 2023 | |
| Promoters | 62.76 | 62.76 | 62.76 |
| FII | 11.94 | 12.1 | 12.09 |
| DII | 9.22 | 9.05 | 9.2 |
| Retail & others | 16.05 | 16.09 | 15.94 |
All values in %
Nestle India Ltd History
Nestle India Ltd was incorporated in New Delhi in 1959, marking its entry into the Indian market. It began by offering shares to the public in 1968. In 1987, Nestle installed a new factory in Nanjangud, Karnataka, for instant coffee production. The company then expanded its product range with chocolates and other items.
By 1999, Nestle India had formed a 10-year agreement with Campco for chocolates and cocoa products. The company also ventured into bottled water with the ‘Pure Life’ brand. In 2009, Nestle India acquired the Healthcare Nutrition Business of Speciality Foods, reflecting its commitment to the healthcare sector.
The company also resumed Maggi production in 2015 after safety tests. Significant milestones include the launch of NESCAFÉ Sunrise Insta-Filter in 2017 and breakfast cereals in 2018. Nestle India continues to innovate while strengthening its presence in the Indian market.
How To Invest In Nestle India Ltd Share?
Investing in Nestle India shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Nestle India shares and place your buy order.
Nestle India Limited Fundamental Analysis – FAQs
Nestle India Ltd’s fundamental analysis reveals a market cap of ₹2,46,371 crore, a PE ratio of 76.2, a low debt-to-equity ratio of 0.10, and an ROE of 13%, reflecting strong financial health and effective debt management.
The market capitalization of Nestle India Ltd is ₹2,46,371 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Nestle India Limited is a major Indian subsidiary of Nestlé S.A., specializing in food and beverages. Established in 1959, it offers diverse products including dairy, coffee, and snacks, contributing significantly to India’s food industry.
Nestle India Limited is owned by Nestlé S.A., a global food and beverage leader headquartered in Switzerland.
The main shareholders of Nestle India are Nestlé S.A., which holds a significant majority stake, and public shareholders including institutional and retail investors. Nestlé S.A.’s ownership ensures control and strategic direction for the company.
Nestle India operates in the food and beverage industry. It focuses on manufacturing and selling a wide range of products, including dairy items, beverages, snacks, and culinary products, catering to diverse consumer needs.
Investors can buy Nestle India shares through stock exchanges by opening a trading account with a broker or via online trading platforms, participating in market transactions during trading hours.
Determining if Nestle India is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 76.2, Nestle India might be fairly valued, reflecting market expectations and moderate growth potential.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
