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Last Updated on: 14 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500790 | NSE: NESTLEIND

Fundamental Analysis of Nestle India Ltd

Basic Stock Data

Last Updated: April 9, 2024, 1:11 am

Market Cap 2,44,096 Cr.
Current Price 2,532
High / Low2,771/1,936
Stock P/E81.3
Book Value 32.1
Dividend Yield0.66 %
ROCE135 %
ROE108 %
Face Value 1.00

Data Source: screener.in

Competitors of Nestle India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bambino Agro Industries Ltd 270 Cr. 338470/29027.5 1140.47 %11.3 %11.6 % 10.0
Aveer Foods Ltd 210 Cr. 522693/36590.6 42.80.00 %8.36 %6.48 % 10.0
SKM Egg Products Export (India) Ltd 778 Cr. 295560/1387.40 95.60.85 %46.4 %48.2 % 10.0
Tasty Bite Eatables Ltd 3,048 Cr. 11,87919,867/8,49063.4 1,0850.02 %14.0 %13.5 % 10.0
Prataap Snacks Ltd 2,198 Cr. 9211,450/665108 2880.11 %1.15 %3.14 % 5.00
Industry Average1,300.80 Cr2,791.0059.38325.080.29%16.24%16.58%9.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales3,4333,6113,4773,8833,7483,9934,0464,6024,2574,8314,6595,0374,600
Expenses2,6562,6812,6292,9352,8893,0723,2313,5983,2843,7353,6033,8123,505
Operating Profit7779308489488599218151,0049731,0951,0561,2251,095
OPM %23%26%24%24%23%23%20%22%23%23%23%24%24%
Other Income31302934-209211931303424140-77
Interest42545252443637374537333123
Depreciation969495961061051029899102107111109
Profit before tax6708127308345008026958998599909391,222886
Tax %28%26%26%26%24%26%27%26%27%26%26%26%26%
Net Profit483602539617379591510661628737698908656
EPS in Rs5.016.255.596.403.946.135.296.866.517.647.249.426.80

Last Updated: April 12, 2024, 3:44 pm

Quarterly Chart

Nestle India Ltd Profit & Loss

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022TTM
Sales7,5158,3359,1019,8558,1759,14110,01011,29212,36913,35014,74116,89718,783
Expenses5,9906,5097,1537,8166,6207,2927,9138,6759,44310,14911,17813,19114,434
Operating Profit1,5251,8251,9482,0391,5551,8502,0972,6182,9263,2023,5623,7064,349
OPM %20%22%21%21%19%20%21%23%24%24%24%22%23%
Other Income21319787-391140177259247146-112107227
Interest527371439192112129164202155146
Depreciation153277330338347354342336370370391403419
Profit before tax1,3881,5531,6781,7748141,5451,8392,4292,6732,8132,8573,2564,011
Tax %31%31%33%33%31%35%33%34%26%26%26%27%
Net Profit9621,0681,1171,1855631,0011,2251,6071,9682,0822,1182,3912,971
EPS in Rs9.9711.0811.5912.295.8410.3912.7116.6720.4221.6021.9724.7930.81
Dividend Payout %49%44%42%51%83%61%68%69%168%93%91%89%

Profit & Loss Yearly Chart

Unable to calculate Year-wise YoY Net Profit Growth.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:11%
3 Years:13%
TTM:13%
Compounded Profit Growth
10 Years:10%
5 Years:13%
3 Years:13%
TTM:26%
Stock Price CAGR
10 Years:18%
5 Years:18%
3 Years:12%
1 Year:27%
Return on Equity
10 Years:65%
5 Years:100%
3 Years:110%
Last Year:108%

Nestle India Ltd Balance Sheet

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Jun 2023
Equity Capital96969696969696969696969696
Reserves1,1781,7022,2722,7412,7213,1863,3243,5771,8221,9231,8502,3632,760
Borrowings9711,0501,1892018333535189147266271288
Other Liabilities2,1572,3152,7562,9633,2513,4953,9074,3795,0655,7336,0216,2496,307
Total Liabilities4,4025,1646,3145,8206,0866,8107,3638,0887,1737,9008,2348,9799,452
Fixed Assets1,5763,2043,3693,1772,8982,7302,6162,4012,3412,1792,9953,0443,073
CWIP1,37234429524523118894105143639246358520
Investments1343658518121,3251,7561,9792,6581,7511,464774778806
Other Assets1,3201,2511,7991,5861,6332,1362,6732,9242,9373,6184,2194,7995,054
Total Assets4,4025,1646,3145,8206,0866,8107,3638,0887,1737,9008,2348,9799,452

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity 1,6931,7961,6441,0981,4661,8182,0522,2952,4542,2362,7373,392
Cash from Investing Activity -941-441-432-70-126-131-5283-321-1,920-392-927
Cash from Financing Activity -513-580-1,635-498-666-997-1,317-3,602-1,956-2,020-2,123-2,436
Net Cash Flow239775-423529674691683-1,223177-1,70422329

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Free Cash Flow0.000.00-18.00-17.00-32.00-33.00-33.00-187.00-144.00-263.00-268.00-338.00

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 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days434443445444
Inventory Days867982103107919210710711111081
Days Payable636871949199118124115122110106
Cash Conversion Cycle2814151220-5-22-14-3-74-21
Working Capital Days-11-17-13-21-10-15-21-19-21-19-15-19
ROCE %62%53%56%46%54%57%71%96%139%150%138%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%62.76%
FIIs12.29%12.43%12.31%12.35%12.01%11.65%12.05%12.12%12.06%12.38%12.10%12.09%
DIIs7.95%7.92%7.99%7.89%8.60%9.14%8.86%9.04%9.19%9.05%9.32%9.16%
Public16.99%16.88%16.93%16.99%16.62%16.45%16.33%16.07%15.99%15.82%15.81%15.98%
No. of Shareholders1,71,5371,67,1091,68,0541,77,2851,92,0941,98,8181,91,2481,84,3411,87,3651,82,1491,84,0902,13,977

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Nifty 50 ETF6,448,9390.961674.27
Axis ELSS Tax Saver Fund6,055,9414.621572.24
SBI S&P BSE Sensex ETF4,549,3531.121182.22
Axis Bluechip Fund3,474,8202.76902.13
UTI Nifty 50 ETF1,797,4580.96466.66
UTI S&P BSE Sensex ETF1,590,0051.12413.19
UTI Flexi Cap Fund1,231,5601.3319.74
Axis Flexi Cap Fund906,4602.05235.34
Nippon India ETF Nifty 50 BeES800,6310.96207.86
UTI MNC Fund655,0006.17170.05

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 23Dec 22Dec 21Dec 20Dec 19
FaceValue1.0010.0010.0010.0010.00
Basic EPS (Rs.)31.10247.94222.46215.98204.28
Diluted EPS (Rs.)31.10247.94222.46215.98204.28
Cash EPS (Rs.)35.55289.73262.92254.39242.54
Book Value[Excl.RevalReserv]/Share (Rs.)32.08255.05216.19209.43199.01
Book Value[Incl.RevalReserv]/Share (Rs.)32.08255.05216.19209.43199.01
Dividend / Share (Rs.)16.70220.00200.00200.00342.00
Revenue From Operations / Share (Rs.)198.361752.431525.561384.571282.81
PBDIT / Share (Rs.)47.63395.51384.95347.16329.06
PBIT / Share (Rs.)43.18353.72344.48308.75290.67
PBT / Share (Rs.)41.88337.69299.08291.72277.27
Net Profit / Share (Rs.)31.10247.93222.45215.97204.15
PBDIT Margin (%)24.0022.5625.2325.0725.65
PBIT Margin (%)21.7620.1822.5822.2922.65
PBT Margin (%)21.1119.2619.6021.0621.61
Net Profit Margin (%)15.6714.1414.5815.5915.91
Return on Networth / Equity (%)96.9597.20102.89103.12102.58
Return on Capital Employeed (%)66.0457.8159.2455.0556.25
Return On Assets (%)29.7026.6226.1226.3627.44
Long Term Debt / Equity (X)0.010.010.010.010.02
Total Debt / Equity (X)0.010.010.010.010.02
Asset Turnover Ratio (%)2.011.971.831.771.62
Current Ratio (X)0.941.131.051.681.74
Quick Ratio (X)0.450.500.441.111.16
Inventory Turnover Ratio (X)4.244.364.114.114.58
Dividend Payout Ratio (NP) (%)0.0084.6989.9090.74149.88
Dividend Payout Ratio (CP) (%)0.0072.4776.0677.04126.15
Earning Retention Ratio (%)0.0015.3110.109.26-49.88
Cash Earning Retention Ratio (%)0.0027.5323.9422.96-26.15
Interest Coverage Ratio (X)38.5024.6718.4520.3924.57
Interest Coverage Ratio (Post Tax) (X)26.1916.4712.8413.6816.25
Enterprise Value (Cr.)2563494.70188056.11189328.49175604.01141349.79
EV / Net Operating Revenue (X)134.0311.1312.8713.1511.43
EV / EBITDA (X)558.2349.3151.0152.4644.55
MarketCap / Net Operating Revenue (X)134.0711.1812.9213.2811.53
Retention Ratios (%)0.0015.3010.099.25-49.88
Price / BV (X)829.1576.8491.1687.8274.32
Price / Net Operating Revenue (X)134.0711.1812.9213.2811.53
EarningsYield0.000.010.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 2837.11

The stock is undervalued by 12.05% compared to the current price ₹2532

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 76.83%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -16.75, which is a positive sign.
  3. The company has higher reserves (2,539.75 cr) compared to borrowings (299.58 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (11.50 cr) and profit (69.50 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 1.75, which may not be favorable.

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: 15.67%
      • 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: 66.04% (Industry Average ROCE: 16.96%)
      • 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%: 96.95% (Industry Average ROE: 20.66%)
      • 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): 26.19
      • 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: 0.45
      • 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: 81.3 (Industry average Stock P/E: 64.8)
      • 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

Nestle India Ltd. is a Public Limited Listed company incorporated on 28/03/1959 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L15202DL1959PLC003786 and registration number is 003786. Currently company belongs to the Industry of Food Processing - Bakery/Dairy/Fruits/Others. Company’s Total Operating Revenue is Rs. 14709.41 Cr. and Equity Capital is Rs. 96.42 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
Food Processing - Bakery/Dairy/Fruits/OthersNo.100/101, World Trade Centre, New Delhi Delhi 110001investor@in.nestle.com
http://www.nestle.in
Management
NamePosition Held
Mr. Suresh NarayananChairman & Managing Director
Mrs. Swati A PiramalInd. Non-Executive Director
Mr. Rajya Vardhan KanoriaInd. Non-Executive Director
Mr. David S McDanielExecutive Director (Finance) & CFO
Mr. P R RameshInd. Non-Executive Director
Mr. Matthias C LohnerExecutive Director -Technical
Ms. Anjali BansalInd. Non-Executive Director
Mr. Alpana ParidaInd. Non-Executive Director

Nestle India Ltd. Share Price Update

Share PriceValue
Today₹2,536.15
Previous Day₹2,526.70

FAQ

What is the latest fair value of Nestle India Ltd?

The latest fair value of Nestle India Ltd is 2837.11.

What is the Market Cap of Nestle India Ltd?

The Market Cap of Nestle India Ltd is 2,44,096 Cr..

What is the current Stock Price of Nestle India Ltd as on 13 April 2024?

The current stock price of Nestle India Ltd as on 13 April 2024 is 2,532.

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

In FY 2024, the High / Low of Nestle India Ltd stocks is ₹2,771/1,936.

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

The Stock P/E of Nestle India Ltd is 81.3.

What is the Book Value of Nestle India Ltd?

The Book Value of Nestle India Ltd is 32.1.

What is the Dividend Yield of Nestle India Ltd?

The Dividend Yield of Nestle India Ltd is 0.66 %.

What is the ROCE of Nestle India Ltd?

The ROCE of Nestle India Ltd is 135 %.

What is the ROE of Nestle India Ltd?

The ROE of Nestle India Ltd is 108 %.

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