Nestle India Ltd logo

Nestle India Ltd

NESTLEIND NSE

Nestle India Limited is a subsidiary of Nestle which is a Swiss MNC. The company operates in the Food segment.

AI Verdict: HOLD Confidence: 6%

Nestle India is a high-quality compounder with 92% 3-year ROE and consistent 11% sales CAGR over 10 years, but at 77.2x PE and 52.4x price-to-book, the stock prices in perfection. With only 42.86% analyst buy ratings and modest 11% TTM profit growth, risk-reward is unfavorable for fresh entry at current levels.

Key Fundamentals

LargecapPackaged FoodsFood Products
Market Cap
2.7L Cr
Volatility
Moderate
P/E Ratio
76.27
EBITDA
₹5,346 Cr
Return on Equity
117.72%
Debt to Equity
0.18
Book Value
₹26.74
EPS
₹33.58
52W High
₹1,498.1
52W Low
₹1,084.7

Technical Indicators

Key Insights

Strengths

4
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has a good return on equity (ROE) track record: 3 Years ROE 92.3%
  • Company has been maintaining a healthy dividend payout of 74.3%

Weaknesses

2
  • Stock is trading at 50.2 times its book value
  • The company has delivered a poor sales growth of 11.6% over past five years.

Growth Rate

Revenue Growth
14.48% ↘
Net Income Growth
9.09% ↘
Cash Flow Change
71.90% ↗
ROE
-15.18% ↘
ROCE
-5.43% ↘
EBITDA Margin (Avg.)
-3.35% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Nestle India is a high-quality compounder with 92% 3-year ROE and consistent 11% sales CAGR over 10 years, but at 77.2x PE and 52.4x price-to-book, the stock prices in perfection. With only 42.86% analyst buy ratings and modest 11% TTM profit growth, risk-reward is unfavorable for fresh entry at current levels.

Bull Case 8
  • Exceptional return on equity of 92% over 3 years demonstrates superior capital efficiency and brand moat
  • Consistent compounded sales growth of 11% over 10 years reflects durable demand for FMCG portfolio
  • Company is virtually debt-free, providing financial flexibility and resilience during economic downturns
  • Healthy dividend payout ratio of 74.3% signals shareholder-friendly capital allocation policy
  • TTM sales growth of 15% shows acceleration from the 5-year CAGR of 12%, indicating improving demand trends
  • 10-year stock CAGR of 16% demonstrates long-term wealth creation track record for patient investors
  • Compounded profit growth of 15% over 10 years outpaces sales growth, reflecting margin expansion and operating leverage
  • Market cap of Rs 2,70,350 crore provides institutional liquidity and index inclusion benefits
Bear Case 8
  • PE ratio of 77.2x is excessively stretched even for a quality FMCG name, leaving no margin of safety
  • Price-to-book of 52.4x implies the market is paying an extreme premium over tangible asset value
  • 20% of analysts recommend selling the stock, with only 42.86% giving buy ratings — a lukewarm consensus
  • 5-year sales CAGR of only 11.6% is modest for a stock commanding a 77x earnings multiple
  • TTM profit growth of 11% has decelerated compared to the 3-year CAGR of 13%, suggesting margin pressure
  • Dividend yield of just 0.86% offers minimal income support despite the high payout ratio
  • 1-year stock return of 20% has front-loaded gains, compressing forward return expectations at current valuations
  • ROE declined from 98% (5-year) to 73% (last year), indicating possible normalization of return profile

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 4
  • FSSAI notice on Maggi safety Jun 12

    FSSAI issued notice to Nestle India over alleged insect infestation in Maggi noodles; stock fell 3.29% to ₹1,375.70. Base case revenue impact estimated at ₹800-1,200 crores if concerns persist, with Maggi contributing ~30% of company revenue.

  • Elevated input cost pressure Jun 8

    ICICI Direct flagged input cost volatility may pressure margins in H1 FY27, with EBITDA margins already at multi-year lows of 21.7-21.9% due to elevated edible oil and milk prices.

  • Premium valuation limits upside Jun 10

    Stock trades at ~80x P/E, which Goldman Sachs notes fully prices in quality and growth prospects, leaving little room for error or unforeseen headwinds.

  • Royalty outflow rises 14% to ₹1,024cr Jun 5

    Nestle India paid ₹1,024.5 crore in royalty fees to parent Nestle S.A. in FY26, up 13.91% YoY, representing 4.5% of net sales that directly reduces profitability.

Positives 4
  • Exceptional Q4 FY26 results Jun 10

    Revenue grew 22.6% YoY to ₹6,748 crore, EBITDA at ₹1,772 crore with margins expanding to 26.3% vs 24.2% expected, and net profit of ₹1,114 crore significantly beat estimates of ₹926 crore.

  • Strong volume-led growth in FY26 Jun 5

    Total FY26 sales reached ₹23,071.5 crore with double-digit volume-led growth; chocolates grew 33% YoY aided by GST cut from 18% to 5%, and rural distribution expanded to 216,000 villages.

  • Goldman Sachs raises target to ₹1,450 Jun 10

    Goldman maintained Neutral rating but raised target from ₹1,425 to ₹1,450 citing improved free cash flow, peak capex cycle with FY26 capex falling to ₹8.2 billion from cumulative ₹39 billion in FY24-25, and inventory days reduced from 52 to 41.

  • Four-pronged growth strategy outlined Jun 8

    Management detailed strategy focused on consumer centricity, out-of-home expansion via 1,000 kiosks, rural penetration across 216,000 villages, and highest-ever operational cost savings reinvested into brand-building.

Neutral 3
  • 67th AGM set for July 3 May 27

    Nestle India will hold AGM on July 3, 2026 via video conferencing with record date of July 10 for final dividend of ₹5.00 per share.

  • FY26 BRSR sustainability report Jun 5

    Company reported 68% sustainable sourcing, 100% plastic neutrality, reasonable assurance for BRSR Core indicators, and zero data breaches in FY26.

  • Investor conference participation May 27

    Nestle India attended Bank of America and Citi India conferences in Mumbai on June 2-3, 2026 with no unpublished price-sensitive information shared.

TL;DR: Nestle India delivered a strong Q4 FY26 with 22.6% revenue growth and margin expansion, backed by robust volume growth and rural expansion to 216,000 villages. The key near-term risk is the FSSAI notice on Maggi food safety allegations, which echoes the damaging 2015 crisis though the company has strong scientific evidence and no confirmed violations. Margins face pressure from elevated input costs in H1 FY27 while the stock's ~80x P/E offers limited margin of safety. The trajectory depends on swift regulatory resolution of the Maggi issue and commodity cost stabilization in H2 FY27.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
4,831
4,659
5,037
4,600
5,268
4,814
5,104
4,780
5,504
5,096
5,644
5,667
6,748
Expenses
3,735
3,603
3,812
3,505
3,918
3,700
3,936
3,677
4,116
3,996
4,407
4,466
4,976
Operating Profit
1,095
1,056
1,225
1,095
1,350
1,114
1,168
1,103
1,388
1,100
1,237
1,201
1,772
OPM %
23%
23%
24%
24%
26%
23%
23%
23%
25%
22%
22%
21%
26%
Other Income
34
24
140
-77
37
39
298
4
9
4
2
170
-18
Interest
37
33
31
23
26
32
32
35
38
47
46
28
37
Depreciation
102
107
111
109
110
113
122
150
155
157
163
174
205
PBT
990
939
1,222
886
1,251
1,009
1,312
922
1,205
900
1,029
1,168
1,513
Tax %
26%
26%
26%
26%
25%
26%
25%
25%
26%
27%
27%
13%
26%
Net Profit
737
698
908
656
934
747
986
696
885
659
753
1,018
1,114
EPS in Rs
3.82
3.62
4.71
3.4
4.84
3.87
5.12
3.61
4.59
3.42
3.91
5.28
5.78
Figures in ₹ Crores

Profit & Loss

  Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2024 15mMar 2025Mar 2026
Sales
8,175
9,141
10,010
11,292
12,369
13,350
14,741
16,897
19,126
24,394
20,202
23,155
Expenses
6,620
7,292
7,913
8,675
9,443
10,149
11,178
13,191
14,655
18,551
15,430
17,848
Operating Profit
1,555
1,850
2,097
2,618
2,926
3,202
3,562
3,706
4,471
5,843
4,771
5,307
OPM %
19%
20%
21%
23%
24%
24%
24%
22%
23%
24%
24%
23%
Other Income
-391
140
177
259
247
146
-112
107
116
159
352
160
Interest
3
91
92
112
129
164
202
155
119
145
136
158
Depreciation
347
354
342
336
370
370
391
403
429
568
540
699
PBT
814
1,545
1,839
2,429
2,673
2,813
2,857
3,256
4,038
5,289
4,447
4,610
Tax %
31%
35%
33%
34%
26%
26%
26%
27%
26%
26%
25%
23%
Net Profit
563
1,001
1,225
1,607
1,968
2,082
2,118
2,391
2,999
3,933
3,314
3,545
EPS in Rs
2.92
5.19
6.35
8.33
10.21
10.8
10.99
12.4
15.55
20.4
17.19
18.38
Div. Payout %
83%
61%
68%
69%
168%
93%
91%
89%
56%
79%
79%
65%
Figures in ₹ Crores

Balance Sheet

  Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2024Mar 2025Mar 2026
Equity Capital
96
96
96
96
96
96
96
96
96
96
96
193
Reserves
2,721
3,186
3,324
3,577
1,822
1,923
1,850
2,363
2,363
3,244
4,021
5,116
Borrowings
18
33
35
35
189
147
266
271
271
345
1,167
444
Other Liabilities
3,251
3,495
3,907
4,379
5,065
5,733
6,021
6,249
6,249
6,838
7,040
7,604
Total Liabilities
6,086
6,810
7,363
8,088
7,173
7,900
8,234
8,979
8,979
10,523
12,324
13,357
Fixed Assets
2,898
2,730
2,616
2,401
2,341
2,179
2,995
3,044
3,044
3,460
5,474
6,290
CWIP
231
188
94
105
143
639
246
358
358
1,742
1,173
507
Investments
1,325
1,756
1,979
2,658
1,751
1,464
774
778
778
464
706
706
Other Assets
1,633
2,136
2,673
2,924
2,937
3,618
4,219
4,799
4,799
4,857
4,972
5,854
Total Assets
6,086
6,810
7,363
8,088
7,173
7,900
8,234
8,979
8,979
10,523
12,324
13,357
Figures in ₹ Crores

Cash Flow

  Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2024Mar 2025Mar 2026
Operating
1,098
1,466
1,818
2,052
2,295
2,454
2,236
2,737
3,392
4,175
2,935
5,048
Investing
-70
-126
-131
-52
83
-321
-1,920
-392
-927
-1,237
-1,811
-624
Financing
-498
-666
-997
-1,317
-3,602
-1,956
-2,020
-2,123
-2,436
-3,135
-1,846
-3,179
Net Cash Flow
529
674
691
683
-1,223
177
-1,704
223
29
-198
-723
1,244
Free Cash Flow
949
1,353
1,622
1,890
2,143
1,980
1,505
2,197
2,028
2,296
930
4,221
CFO/OP
93
106
116
112
101
99
83
97
100
94
82
115
Figures in ₹ Crores

Ratios

  Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2024Mar 2025Mar 2026
Debtor Days
4
4
3
4
4
5
4
4
4
4
7
5
Inventory Days
103
107
91
92
107
107
111
110
83
83
139
105
Days Payable
94
91
99
118
124
115
122
121
92
112
128
129
Cash Conversion Cycle
12
20
-5
-22
-14
-3
-7
-7
-5
-24
18
-19
Working Capital Days
-21
-10
-15
-21
-20
-22
-20
-16
-10
-19
-19
-24
ROCE %
46%
54%
57%
71%
96%
139%
150%
138%
153%
169%
96%
84%

Shareholding Pattern

As of Mar 2026
Promoters 62.76%
DIIs 12.39%
Public 12.08%
FIIs 9.74%
Others 3.03%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Aug 2025Sep 2025Dec 2025Mar 2026
Promoters
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
62.76%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
12.10%
0.00%
12.10%
11.94%
11.94%
10.26%
10.01%
10.29%
0.00%
9.82%
9.81%
9.74%
DIIs
7.79%
7.79%
7.86%
7.75%
7.96%
8.47%
8.87%
9.06%
9.19%
9.05%
9.32%
8.44%
9.04%
9.22%
9.49%
10.80%
11.31%
11.18%
11.44%
11.77%
12.09%
12.39%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
13.44%
13.40%
13.32%
13.31%
13.39%
13.38%
13.22%
13.04%
12.99%
12.84%
12.84%
12.88%
13.08%
13.03%
12.79%
13.08%
12.73%
12.47%
12.62%
12.50%
12.25%
12.08%
Others
16.00%
16.05%
16.05%
16.17%
15.88%
15.38%
15.14%
15.14%
15.05%
15.34%
2.97%
15.92%
3.01%
3.04%
3.02%
3.10%
3.17%
3.30%
13.17%
3.15%
3.08%
3.03%
No. of Shareholders
1,71,537
1,67,109
1,68,054
1,77,285
1,92,094
1,98,818
1,91,248
1,84,341
1,87,365
1,82,149
1,84,090
2,13,977
4,10,144
4,37,880
4,27,964
5,47,850
5,38,165
5,19,439
5,41,414
5,46,818
5,06,673
4,92,124

Documents

1
Concall - Mar 2019 Mar 2019
2
Concall - Aug 2019 Aug 2019
3
Concall - Feb 2022 Feb 2022
4
Concall - Aug 2022 Aug 2022
5
Concall - Apr 2024 Apr 2024

Frequently Asked Questions about Nestle India Ltd

What does Nestle India Ltd do?
Nestle India Limited is a subsidiary of Nestle which is a Swiss MNC. The company operates in the Food segment.
Where is Nestle India Ltd (NESTLEIND) listed?
Nestle India Ltd is listed on the Indian stock exchanges. It is listed on NSE: NESTLEIND and BSE: 500790. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Nestle India Ltd belong to?
Nestle India Ltd operates in the Fast Moving Consumer Goods sector within the Food Products industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Nestle India Ltd?
Nestle India Ltd has a market capitalisation of approximately ₹267572.90 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Nestle India Ltd?
The Price-to-Earnings (PE) ratio of Nestle India Ltd is 76.27. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Nestle India Ltd?
Over the past 52 weeks, Nestle India Ltd has traded between a low of ₹1,084.7 and a high of ₹1,498.1. This range helps investors understand the stock's price volatility and recent trading levels.
Does Nestle India Ltd pay dividends?
Yes, Nestle India Ltd has a dividend yield of 0.87%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Nestle India Ltd?
Nestle India Ltd has a Return on Equity (ROE) of 117.72%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Nestle India Ltd on Tapetide?
On Tapetide, you can view Nestle India Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Nestle India Limited is a subsidiary of Nestle which is a Swiss MNC. The company operates in the Food segment.

Website nestle.in
Employees 8,419
Listed 1998-12-03
Face Value ₹ 1
Issued Size 1,92,83,14,320

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