BSE: 500790 | NSE: NESTLEIND | Consumer Food | Large Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Nestle India Ltd is a good quality company.
The key valuation ratios of Nestle India Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Nestle India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 55.8% | 28.7% | 53.2% | 57% | 70.9% | 98.7% | 147.9% | 151.6% | 152.6% | 185.4% | - |
| Value Creation Index ⓘ | NA | 1.6 | 3.7 | 4.1 | 5.3 | 7.8 | 12.1 | 12.5 | 12.6 | 15.5 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 9,855 | 8,175 | 9,141 | 10,010 | 11,292 | 12,369 | 13,350 | 14,741 | 16,897 | 19,515 | 19,706 |
| Sales YoY Gr. | - | -17% | 11.8% | 9.5% | 12.8% | 9.5% | 7.9% | 10.4% | 14.6% | 15.5% | - |
| Adj EPS ⓘ | 12.4 | 9.5 | 10.5 | 12.7 | 16.8 | 20.4 | 21.6 | 23.7 | 24.8 | 32.6 | 34.5 |
| YoY Gr. | - | -22.8% | 9.8% | 21.7% | 31.6% | 21.8% | 5.9% | 9.5% | 5% | 31.2% | - |
| BVPS (₹) ⓘ | 29.4 | 29.2 | 34 | 35.5 | 38.1 | 19.9 | 20.9 | 20.2 | 25.5 | 27.7 | 41.4 |
| Adj Net Profit ⓘ | 1,192 | 920 | 1,010 | 1,229 | 1,616 | 1,968 | 2,083 | 2,281 | 2,395 | 3,141 | 3,323 |
| Cash Flow from Ops. ⓘ | 1,644 | 1,098 | 1,466 | 1,818 | 2,052 | 2,295 | 2,454 | 2,236 | 2,737 | 3,340 | - |
| Debt/CF from Ops. ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 7.9% | 11.6% | 13.5% | 15.5% | ||||
| Adj EPS ⓘ | 11.4% | 14.2% | 14.7% | 31.2% | ||||
| BVPSⓘ | -0.7% | -6.2% | 9.8% | 8.7% | ||||
| Share Price | 13.3% | 9.3% | 4.4% | -9.6% | ||||
Performance Ratio Colour Code Guide ⓘ
| Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 45.8 | 32.5 | 33.1 | 36.7 | 45.6 | 70.4 | 105.8 | 115.1 | 108.7 | 135.4 | 99.7 |
| Op. Profit Mgn % ⓘ | 20.9 | 19.1 | 20.3 | 21 | 23.3 | 23.7 | 24 | 24.2 | 22 | 23.8 | 24 |
| Net Profit Mgn % ⓘ | 12.1 | 11.3 | 11.1 | 12.3 | 14.3 | 15.9 | 15.6 | 15.5 | 14.2 | 16.1 | 16.9 |
| Debt to Equity ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Working Cap Days ⓘ | 39 | 49 | 46 | 44 | 40 | 42 | 46 | 64 | 76 | 57 | 45 |
| Cash Conv. Cycle ⓘ | -2 | -5 | -6 | -9 | -19 | -20 | -18 | -16 | -14 | -12 | -7 |
Sales growth is growing at healthy rate in last 3 years 13.49%
Net Profit is growing at healthy rate in last 3 years 14.67%
Return on Equity has declined versus last 3 years average to 99.70%
Sales growth is not so good in last 4 quarters at 5.66%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 34.5 | - |
| TTM Sales (₹ Cr.) | 19,706 | - |
| BVPS (₹.) ⓘ | 41.4 | - |
| Reserves (₹ Cr.) ⓘ | 3,894 | - |
| P/BV ⓘ | 53.61 | - |
| PE ⓘ | 64.38 | - |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 2170.00 / 2777.00 |
| All Time Low / High (₹) | 5.93 / 2777.00 |
| Market Cap (₹ Cr.) | 2,13,932 |
| Equity (₹ Cr.) | 96.4 |
| Face Value (₹) | 1 |
| Industry PE ⓘ | 64.4 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| PARTICULARS | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 9,855 | 8,175 | 9,141 | 10,010 | 11,292 | 12,369 | 13,350 | 14,741 | 16,897 | 24,394 |
| Operating Expenses ⓘ | 7,815 | 6,620 | 7,292 | 7,913 | 8,676 | 9,445 | 10,153 | 11,178 | 13,191 | 18,581 |
| Manufacturing Costs | 1,375 | 977 | 1,105 | 1,208 | 1,315 | 1,389 | 1,377 | 1,784 | 2,206 | 2,650 |
| Material Costs | 3,766 | 2,921 | 3,220 | 3,617 | 3,823 | 4,377 | 4,832 | 5,234 | 6,410 | 9,155 |
| Employee Cost | 837 | 913 | 902 | 1,017 | 1,124 | 1,258 | 1,501 | 1,530 | 1,635 | 2,336 |
| Other Costs ⓘ | 1,837 | 1,810 | 2,066 | 2,070 | 2,413 | 2,421 | 2,443 | 2,630 | 2,939 | 4,439 |
| Operating Profit ⓘ | 2,040 | 1,555 | 1,850 | 2,097 | 2,617 | 2,924 | 3,197 | 3,562 | 3,706 | 5,813 |
| Operating Profit Margin (%) | 20.7% | 19.0% | 20.2% | 20.9% | 23.2% | 23.6% | 23.9% | 24.2% | 21.9% | 23.8% |
| Other Income ⓘ | 87 | 110 | 151 | 177 | 260 | 248 | 151 | 124 | 107 | 155 |
| Interest ⓘ | 14 | 3 | 91 | 92 | 112 | 129 | 164 | 202 | 155 | 145 |
| Depreciation ⓘ | 346 | 347 | 354 | 342 | 336 | 370 | 370 | 391 | 403 | 538 |
| Exceptional Items ⓘ | 7 | -501 | -11 | 0 | 0 | 0 | 0 | -237 | 0 | 4 |
| Profit Before Tax ⓘ | 1,774 | 814 | 1,545 | 1,839 | 2,429 | 2,673 | 2,813 | 2,857 | 3,256 | 5,289 |
| Tax ⓘ | 590 | 250 | 544 | 614 | 822 | 705 | 730 | 739 | 865 | 1,356 |
| Profit After Tax | 1,185 | 563 | 1,001 | 1,225 | 1,607 | 1,968 | 2,082 | 2,118 | 2,391 | 3,933 |
| PAT Margin (%) | 12.0% | 6.9% | 11.0% | 12.2% | 14.2% | 15.9% | 15.6% | 14.4% | 14.1% | 16.1% |
| Adjusted EPS (₹) | 12.3 | 5.8 | 10.4 | 12.7 | 16.7 | 20.4 | 21.6 | 22.0 | 24.8 | 40.8 |
| Dividend Payout Ratio (%) | 51% | 83% | 61% | 68% | 69% | 168% | 93% | 91% | 89% | 79% |
| PARTICULARS | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Shareholders Fund | 2,837 | 2,818 | 3,282 | 3,421 | 3,674 | 1,919 | 2,019 | 1,946 | 2,459 | 3,341 |
| Share Capital ⓘ | 96 | 96 | 96 | 96 | 96 | 96 | 96 | 96 | 96 | 96 |
| Reserves ⓘ | 2,741 | 2,721 | 3,186 | 3,324 | 3,577 | 1,822 | 1,923 | 1,850 | 2,363 | 3,244 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt | 20 | 18 | 33 | 35 | 35 | 53 | 35 | 34 | 30 | 31 |
| Long Term Debt | 15 | 17 | 33 | 35 | 35 | 53 | 32 | 27 | 27 | 25 |
| Short Term Debt | 4 | 1 | 0 | 0 | 0 | 0 | 3 | 7 | 3 | 6 |
| Trade Payables | 729 | 749 | 799 | 985 | 1,240 | 1,492 | 1,517 | 1,748 | 1,934 | 2,238 |
| Others Liabilities ⓘ | 2,234 | 2,501 | 2,696 | 2,922 | 3,139 | 3,709 | 4,309 | 4,480 | 4,530 | 4,913 |
| Total Liabilities ⓘ | 5,820 | 6,086 | 6,810 | 7,363 | 8,088 | 7,173 | 7,880 | 8,208 | 8,953 | 10,523 |
Fixed Assets | ||||||||||
| Gross Block | 5,009 | 5,117 | 3,095 | 3,358 | 3,485 | 3,865 | 3,998 | 5,119 | 5,474 | 6,334 |
| Accumulated Depreciation | 1,824 | 2,191 | 353 | 742 | 1,074 | 1,524 | 1,819 | 2,124 | 2,430 | 2,843 |
| Net Fixed Assetsⓘ | 3,185 | 2,926 | 2,742 | 2,616 | 2,412 | 2,341 | 2,179 | 2,995 | 3,044 | 3,490 |
| CWIP ⓘ | 245 | 231 | 188 | 94 | 105 | 143 | 639 | 246 | 358 | 1,742 |
| Investmentsⓘ | 812 | 1,325 | 1,756 | 1,979 | 2,658 | 1,751 | 1,464 | 774 | 778 | 464 |
| Inventories | 844 | 821 | 940 | 902 | 966 | 1,283 | 1,416 | 1,593 | 1,929 | 2,089 |
| Trade Receivables | 99 | 78 | 98 | 89 | 125 | 124 | 165 | 166 | 192 | 300 |
| Cash Equivalents | 446 | 500 | 880 | 1,457 | 1,610 | 1,308 | 1,770 | 735 | 946 | 779 |
| Others Assetsⓘ | 189 | 206 | 207 | 225 | 212 | 222 | 247 | 1,699 | 1,707 | 1,659 |
| Total Assets ⓘ | 5,820 | 6,086 | 6,810 | 7,363 | 8,088 | 7,173 | 7,880 | 8,208 | 8,953 | 10,523 |
| PARTICULARS | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 1,644 | 1,098 | 1,466 | 1,818 | 2,052 | 2,295 | 2,454 | 2,236 | 2,737 | 4,175 |
| PBT ⓘ | 1,774 | 814 | 1,545 | 1,839 | 2,429 | 2,673 | 2,813 | 2,857 | 3,256 | 5,289 |
| Adjustment ⓘ | 277 | 295 | 219 | 208 | 92 | 131 | 248 | 279 | 353 | 434 |
| Changes in Working Capital ⓘ | 153 | 332 | 204 | 375 | 413 | 163 | 97 | -172 | -30 | -249 |
| Tax Paid ⓘ | -589 | -342 | -503 | -604 | -881 | -673 | -703 | -729 | -841 | -1,299 |
| Cash Flow From Investing Activity ⓘ | -432 | -70 | -126 | -131 | -52 | 83 | -321 | -1,920 | -392 | -1,237 |
| Capex | -179 | -149 | -113 | -196 | -163 | -152 | -474 | -731 | -541 | -1,878 |
| Net Investments | -109 | -37 | -153 | -112 | -160 | -16 | 0 | -1,379 | 25 | 284 |
| Others ⓘ | -143 | 116 | 140 | 177 | 271 | 251 | 153 | 189 | 123 | 357 |
| Cash Flow From Financing Activityⓘ | -1,635 | -498 | -666 | -997 | -1,317 | -3,602 | -1,956 | -2,020 | -2,123 | -3,135 |
| Net Proceeds from Shares ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Proceeds from Borrowing ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Paid ⓘ | -15 | -3 | -4 | -1 | -4 | -11 | -9 | -9 | -18 | -26 |
| Dividend Paid ⓘ | -607 | -410 | -564 | -829 | -1,090 | -2,950 | -1,890 | -1,928 | -2,025 | -3,008 |
| Others ⓘ | -1,012 | -85 | -98 | -167 | -224 | -640 | -57 | -82 | -80 | -101 |
| Net Cash Flow ⓘ | -423 | 529 | 674 | 691 | 683 | -1,223 | 177 | -1,704 | 223 | -198 |
| PARTICULARS | Dec'14 | Dec'15 | Dec'16 | Dec'17 | Dec'18 | Dec'19 | Dec'20 | Dec'21 | Dec'22 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Ratios | ||||||||||
| ROE (%) | 45.51 | 19.92 | 32.83 | 36.56 | 45.3 | 70.39 | 105.76 | 106.84 | 108.52 | 135.61 |
| ROCE (%) | 55.76 | 28.7 | 53.2 | 57.04 | 70.93 | 98.67 | 147.88 | 151.64 | 152.61 | 185.43 |
| Asset Turnover Ratio | 1.68 | 1.42 | 1.47 | 1.44 | 1.51 | 1.67 | 1.83 | 1.89 | 2.03 | 2.58 |
| PAT to CFO Conversion(x) | 1.39 | 1.95 | 1.46 | 1.48 | 1.28 | 1.17 | 1.18 | 1.06 | 1.14 | 1.06 | Working Capital Days |
| Receivable Days | 3 | 4 | 3 | 3 | 3 | 4 | 4 | 4 | 4 | 4 |
| Inventory Days | 28 | 36 | 34 | 33 | 29 | 32 | 36 | 36 | 37 | 29 |
| Payable Days | 66 | 92 | 88 | 90 | 106 | 114 | 114 | 114 | 105 | 83 |
NESTLE's relationship with India dates back to 1912, when it began trading as The NESTLÉ Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.
After India's independence in 1947, the economic policies of the Indian Government emphasised the need for local production. NESTLÉ responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted NESTLÉ to develop the milk economy. Progress in Moga required the introduction of NESTLE's Agricultural Services to educate, advise and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans.
NESTLE set up milk collection centres that would not only ensure prompt collection and pay fair prices, but also instill amongst the community, a confidence in the dairy business. Progress involved the creation of prosperity on an on-going and sustainable basis that has resulted in not just the transformation of Moga into a prosperous and vibrant milk district today, but a thriving hub of industrial activity, as well.
NESTLE has been a partner in India's growth for over a century and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.
The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness through its product offerings. The culture of innovation and renovation within the Company and access to the NESTLÉ Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality, safe food products at affordable prices.
NESTLE India manufactures products of truly international quality under internationally famous brand names such as NESCAFE, 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 NESTLE Milk, NESTLE SLIM Milk, NESTLE Dahi and NESTLE Jeera Raita.
NESTLE India is a responsible organisation and facilitates initiatives that help to improve the quality of life in the communities where it operates.
Products of the company
Awards and Recognitions
Company received awards at various industry platforms in the area of corporate management, marketing, advertising, digital engagement, packaging, human resource development and corporate social responsibility. Some awards are listed below:
Milestones
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MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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