Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 31 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: | NSE:

Nestle India Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 31, 2024, 9:05 am

Market Cap 2,08,248 Cr.
Current Price 2,160
High / Low 2,778/2,145
Stock P/E65.6
Book Value 41.4
Dividend Yield0.72 %
ROCE169 %
ROE135 %
Face Value 1.00
PEG Ratio7.37

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Nestle India Ltd

Competitors of Nestle India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mrs Bectors Food Specialities Ltd 9,889 Cr. 1,613 2,200/96469.4 1820.20 %25.4 %23.2 % 10.0
Nakoda Group of Industries Ltd 59.3 Cr. 42.9 59.5/33.3 11.80.00 %1.80 %12.1 % 10.0
ICL Organic Dairy Products Ltd 23.8 Cr. 39.7 39.7/39.71,192 20.10.00 %0.25 %0.17 % 10.0
Himalaya Food International Ltd 110 Cr. 19.0 29.9/18.417.6 24.40.00 %3.63 %3.61 % 10.0
Goldcoin Health Foods Ltd 3.69 Cr. 12.3 13.6/6.14 3.430.00 %18.4 %24.2 % 10.0
Industry Average16,834.13 Cr851.41192.17122.910.21%18.59%18.53%6.74

All Competitor Stocks of Nestle India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales3,4773,8833,7483,9934,0464,6024,2574,8314,6595,0374,6005,2684,814
Expenses2,6292,9352,8893,0723,2313,5983,2843,7353,6033,8123,5053,9193,700
Operating Profit8489488599218151,0049731,0951,0561,2251,0951,3491,114
OPM %24%24%23%23%20%22%23%23%23%24%24%26%23%
Other Income2934-209211931303424140-773739
Interest52524436373745373331232632
Depreciation95961061051029899102107111109109113
Profit before tax7308345008026958998599909391,2228861,2511,009
Tax %26%26%24%26%27%26%27%26%26%26%26%25%26%
Net Profit539617379591510661628737698908656934747
EPS in Rs5.596.403.946.135.296.866.517.647.249.426.809.697.74

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2024TTM
Sales9,1019,8558,1759,14110,01011,29212,36913,35014,74116,89719,12624,39419,719
Expenses7,1537,8166,6207,2927,9138,6759,44310,14911,17813,19114,65518,58114,936
Operating Profit1,9482,0391,5551,8502,0972,6182,9263,2023,5623,7064,4715,8134,783
OPM %21%21%19%20%21%23%24%24%24%22%23%24%24%
Other Income9787-391140177259247146-112107116159139
Interest371439192112129164202155119145112
Depreciation330338347354342336370370391403429538441
Profit before tax1,6781,7748141,5451,8392,4292,6732,8132,8573,2564,0385,2894,368
Tax %33%33%31%35%33%34%26%26%26%27%26%26%
Net Profit1,1171,1855631,0011,2251,6071,9682,0822,1182,3912,9993,9333,244
EPS in Rs11.5912.295.8410.3912.7116.6720.4221.6021.9724.7931.1040.7933.65
Dividend Payout %42%51%83%61%68%69%168%93%91%89%56%79%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year
YoY Net Profit Growth (%)
Change in YoY Net Profit Growth (%)

No data available for trend analysis.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:17%
3 Years:22%
TTM:5%
Compounded Profit Growth
10 Years:13%
5 Years:20%
3 Years:24%
TTM:10%
Stock Price CAGR
10 Years:13%
5 Years:8%
3 Years:3%
1 Year:-21%
Return on Equity
10 Years:68%
5 Years:107%
3 Years:121%
Last Year:135%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:50 am

MonthDec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2024Sep 2024
Equity Capital96969696969696969696969696
Reserves2,2722,7412,7213,1863,3243,5771,8221,9231,8502,3632,3633,2443,894
Borrowings1,1892018333535189147266271271345370
Other Liabilities2,7562,9633,2513,4953,9074,3795,0655,7336,0216,2496,2496,8386,747
Total Liabilities6,3145,8206,0866,8107,3638,0887,1737,9008,2348,9798,97910,52311,108
Fixed Assets3,3693,1772,8982,7302,6162,4012,3412,1792,9953,0443,0443,4603,925
CWIP295245231188941051436392463583581,7422,340
Investments8518121,3251,7561,9792,6581,7511,464774778778464786
Other Assets1,7991,5861,6332,1362,6732,9242,9373,6184,2194,7994,7994,8574,057
Total Assets6,3145,8206,0866,8107,3638,0887,1737,9008,2348,9798,97910,52311,108

Reserves and Borrowings Chart

Cash Flow

MonthDec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2024
Cash from Operating Activity +1,7961,6441,0981,4661,8182,0522,2952,4542,2362,7373,3924,175
Cash from Investing Activity +-441-432-70-126-131-5283-321-1,920-392-927-1,237
Cash from Financing Activity +-580-1,635-498-666-997-1,317-3,602-1,956-2,020-2,123-2,436-3,135
Net Cash Flow775-423529674691683-1,223177-1,70422329-198

Free Cash Flow

MonthDec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2024
Free Cash Flow0.00-18.00-17.00-32.00-33.00-33.00-187.00-144.00-263.00-268.00-267.00-340.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2024
Debtor Days344434454444
Inventory Days798210310791921071071111108383
Days Payable687194919911812411512212192112
Cash Conversion Cycle14151220-5-22-14-3-7-7-5-24
Working Capital Days-17-13-21-10-15-21-19-21-19-15-9-18
ROCE %53%56%46%54%57%71%96%139%150%138%153%169%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%
FIIs12.35%12.01%11.65%12.05%12.12%12.06%12.38%12.10%12.09%12.10%11.94%11.94%
DIIs7.89%8.60%9.14%8.86%9.04%9.19%9.05%9.32%9.16%9.00%9.17%9.45%
Public16.99%16.62%16.45%16.33%16.07%15.99%15.82%15.81%15.98%16.14%16.10%15.86%
No. of Shareholders1,77,2851,92,0941,98,8181,91,2481,84,3411,87,3651,82,1491,84,0902,13,9774,10,1444,37,8804,27,964

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF6,482,7940.851654.181,125,3342024-12-26476.08%
SBI BSE Sensex ETF4,660,53611189.631,125,3342024-12-26314.15%
Axis ELSS Tax Saver Fund3,763,0912.59960.211,125,3342024-12-26234.4%
Axis Bluechip Fund2,262,9421.67577.421,125,3342024-12-26101.09%
UTI Nifty 50 ETF1,873,5220.85478.061,125,3342024-12-2666.49%
UTI BSE Sensex ETF1,705,4271435.321,125,3342024-12-2651.55%
Kotak Equity Arbitrage Fund - Regular Plan1,165,6000.62297.421,125,3342024-12-263.58%
UTI Flexi Cap Fund1,125,3341.12287.151,125,3342024-12-260%
Nippon India ETF Nifty 50 BeES983,2700.85250.91,125,3342024-12-26-12.62%
SBI Arbitrage Opportunities Fund819,6000.64209.131,125,3342024-12-26-27.17%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24
FaceValue1.00
Basic EPS (Rs.)40.79
Diluted EPS (Rs.)40.79
Cash EPS (Rs.)46.37
Book Value[Excl.RevalReserv]/Share (Rs.)34.65
Book Value[Incl.RevalReserv]/Share (Rs.)34.65
Revenue From Operations / Share (Rs.)253.00
PBDIT / Share (Rs.)61.89
PBIT / Share (Rs.)56.32
PBT / Share (Rs.)54.85
Net Profit / Share (Rs.)40.79
NP After MI And SOA / Share (Rs.)40.79
PBDIT Margin (%)24.46
PBIT Margin (%)22.25
PBT Margin (%)21.68
Net Profit Margin (%)16.12
NP After MI And SOA Margin (%)16.12
Return on Networth / Equity (%)117.71
Return on Capital Employeed (%)82.68
Return On Assets (%)37.37
Long Term Debt / Equity (X)0.01
Total Debt / Equity (X)0.01
Current Ratio (X)0.88
Quick Ratio (X)0.35
Interest Coverage Ratio (X)41.02
Interest Coverage Ratio (Post Tax) (X)28.00
Enterprise Value (Cr.)252190.88
EV / Net Operating Revenue (X)10.34
EV / EBITDA (X)42.26
MarketCap / Net Operating Revenue (X)10.37
Price / BV (X)75.71
Price / Net Operating Revenue (X)10.37
EarningsYield0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Nestle India Ltd as of December 31, 2024 is: 3,692.78

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 31, 2024, Nestle India Ltd is Undervalued by 70.96% compared to the current share price 2,160.00

Intrinsic Value of Nestle India Ltd as of December 31, 2024 is: 4,021.47

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 31, 2024, Nestle India Ltd is Undervalued by 86.18% compared to the current share price 2,160.00

Last 5 Year EPS CAGR: 8.90%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 98.50%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -16.50, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -2.17, which is a positive sign.
  4. The company has higher reserves (2,713.85 cr) compared to borrowings (245.31 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (13.31 cr) and profit (64.77 cr) over the years.

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Nestle India Ltd:
      1. Net Profit Margin: 16.12%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 82.68% (Industry Average ROCE: 18.59%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 117.71% (Industry Average ROE: 18.53%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 28
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 0.35
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 65.6 (Industry average Stock P/E: 192.17)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.01
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    No data availabale for About the Company
    INDUSTRYADDRESSCONTACT
    Industry not foundAddress not foundContact not found
    Management Data not Available

    FAQ

    What is the latest intrinsic value of Nestle India Ltd?

    The latest intrinsic value of Nestle India Ltd as on 31 December 2024 is ₹3692.78, which is 70.96% higher than the current market price of ₹2,160.00. The stock has a market capitalization of 2,08,248 Cr. and recorded a high/low of 2,778/2,145 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹3,894 Cr and total liabilities of ₹11,108 Cr.

    What is the Market Cap of Nestle India Ltd?

    The Market Cap of Nestle India Ltd is 2,08,248 Cr..

    What is the current Stock Price of Nestle India Ltd as on 31 December 2024?

    The current stock price of Nestle India Ltd as on 31 December 2024 is 2,160.

    What is the High / Low of Nestle India Ltd stocks in FY 2024-2025?

    In FY 2024-2025, the High / Low of Nestle India Ltd stocks is 2,778/2,145.

    What is the Stock P/E of Nestle India Ltd?

    The Stock P/E of Nestle India Ltd is 65.6.

    What is the Book Value of Nestle India Ltd?

    The Book Value of Nestle India Ltd is 41.4.

    What is the Dividend Yield of Nestle India Ltd?

    The Dividend Yield of Nestle India Ltd is 0.72 %.

    What is the ROCE of Nestle India Ltd?

    The ROCE of Nestle India Ltd is 169 %.

    What is the ROE of Nestle India Ltd?

    The ROE of Nestle India Ltd is 135 %.

    What is the Face Value of Nestle India Ltd?

    The Face Value of Nestle India Ltd is 1.00.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Nestle India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE