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Nestle India Ltd. Stock Analysis

Large Cap
Evaluated by 5848 users | BSE: 500790 | NSE: NESTLEIND |
Consumer Food
Nestle has its presence in India for around nine decades, making it one of the oldest company in India. Nestlé India is a subsidiary of Nestlé SA of Switzerland.The company has its headquarters at Gurgaon near Delhi and has  seven factories spread all over India. It...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Nestle India Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Capital Employed 114.97%62.99%43.09%35.76%37.47%32.4%34.9%38.19%47.28%72.11%
Value Creation Index 14.136.234.223.333.542.923.233.624.72NA
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6,2557,5158,3359,1019,8558,1759,14110,01011,29212,369
Y-o-Y Gr. Rt.-20.1%10.9%9.2%8.3%-17%11.8%9.5%12.8%9.5%
Adjusted EPS (Rs.) 85.58100.9111.89116.17123.6295.41104.73127.44167.56204.24
Y-o-Y Gr. Rt.-17.9%10.9%3.8%6.4%-22.8%9.8%21.7%31.5%21.9%
Book Value per Share (Rs.) 88.72132.13186.52245.67294.26292.25340.42354.76381.01200.4
Adjusted Net Profit 8259731,0791,1201,1929201,0101,2291,6161,969
Net Op. Cash Flow (Rs. Cr.) 1,0371,1581,6931,7961,6441,0981,4661,8182,0522,234
Debt to Cash Flow from Ops 00.840.620.660.010.020.020.020.020.02
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Nestle India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.9%4.7%10.6%9.5%
Adjusted EPS 10.2%10.6%24.9%21.9%
Book Value per Share 9.5-7.4-16.2-47.4
Share Price 15.9% 20.7% 31.4% 9.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19
Return on Equity (%) 114.8691.3870.2353.7545.7932.5333.1136.6645.5470.25
Operating Profit Margin (%) 19.8320.4322.1721.7120.8819.4720.252123.2923.15
Net Profit Margin (%) 13.1912.9512.9412.3112.0911.2511.0512.2814.3115.92
Debt to Equity 00.760.580.50.010.010.010.010.010.03
Working Capital Days 43454540394946444042
Cash Conversion Cycle -18-550-2-5-6-9-19-21
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 62.76%
Institutions 20.42%
Non-Institutions 16.82%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Nestle India Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Nestle India Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Nestle India Ltd.'s performance infers:

Nestle India Ltd. earnings have grown by 10.6%, whereas share price has appreciated 20.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Nestle India Ltd. share prices over the last 10 years. Here is what we found out:

Nestle India Ltd. share price has appreciated 16.9% annually over the past ten years.

Nestle has its presence in India for around nine decades, making it one of the oldest company in India. Nestlé India is a subsidiary of Nestlé SA of Read More

Nestle has its presence in India for around nine decades, making it one of the oldest company in India. Nestlé India is a subsidiary of Nestlé SA of Switzerland.

The company has its headquarters at Gurgaon near Delhi and has  seven factories spread all over India. It started its journey in India in 1912 by entering into the dairy business.

Nestlé India, one the biggest players in FMCG segment, has a presence in milk & nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery segments. Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita.

Nestle has created brands like Nestlé Milkmaid, Nestlé Everyday, Maggi Noodles, Maggi Soups, Polo, Kit Kat, Nescafe & many more.

As per the market-wise position Nestlé India stands first in instant noodles & ketchups, second in healthy soups, No.1 in instant coffee, & No.2 in overall chocolate category.

Nestle India continuously focuses on understanding changing lifestyles in India. This helps it to foresee needs in hts product offerings. The company innovates new product & renovates existing one providing high quality, safe food products at affordable prices.

Milestones achieved

  • CNBC Awaaz Consumer Awards has honoured Nescafe as the most preferred coffee brand.
  • Business India has rated Nestlé India as No.1 on Return On Capital Employed amongst Super 100 companies.
  • In 2006-2007 Nestlé India was awarded the ‘Best Exporter of Instant Coffee’, ‘Highest Exporter to Russia and CIS”, ‘Highest Exporter to Far East Countries’.
  • In 2009 Nestle India Board approved Proposal To acquire Healthcare Nutrition Business of Speciality Foods
    In 2010 Nestlé Inaugurates New Culinary Plant at Nanjangud.
  • 2010-12 CNBC Awaaz Consumer Awards  Business India has rated Nestle India as No.1 on Return On Capital Employed amongst Super 100 companies.

The company has introduced products in milk segment for daily consumption and use such as Nestle Milk, Nestle Slim Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera Raita.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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