Nestle
Nestle
Food Products F&OKey Fundamentals
LargecapPackaged FoodsFood ProductsPrice-based figures as of 12 Oct 2026, 15:04 IST · EPS basis: Standalone · TTM
Tapetide Score
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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 47.1 times its book value
- The company has delivered a poor sales growth of 11.6% over past five years.
Growth Rate
change over 1 year
change over 1 year
change over 1 year
change over 1 year Operating margin 24% · Jun 2026
AI Analysis — Bull vs Bear
As of the 2026-10-09 close, Nestle India Ltd trades at ₹1,333, giving it a market capitalisation of ₹257,044.3 crore and a trailing P/E of 66.55 on TTM EPS of ₹20.03. The company is nearly debt free (debt-to-equity of 0.08) and earns very high returns (ROE 67.85%, ROCE 56.08%), with TTM sales up 19% and profit up 25%. Against that, it trades at 49.85 times book value, its 5-year sales growth was 12%, and the stock has returned 4% a year over the past 3 years.
- Capital efficiency is very high, with current ROE of 67.85% and ROCE of 56.08%. The 3-year average ROE was 92% and the 10-year average was 76%, so returns well above the cost of capital have held up over a long period.
- The balance sheet is close to debt free, with debt-to-equity of 0.08, and the company has reduced its debt further. That leaves little financial risk and plenty of room to fund capacity expansion internally.
- Growth has picked up recently. TTM sales growth of 19% and TTM profit growth of 25% are well above the 3-year compounded rates of 11% (sales) and 13% (profit).
- Profit has grown faster than sales over the long run: 15% compounded over 10 years against 11% for sales. That suggests pricing power and better operating leverage over time.
- Shareholder payouts are consistent, with a dividend payout ratio of 74.3% and a dividend yield of 1.06% at ₹1,333. Because the business needs little reinvestment, most of its earnings go back to shareholders.
- The stock has compounded at 14% a year over 10 years, which is roughly in line with 10-year profit growth of 15%. Over the long run, the share price has followed earnings.
- At ₹1,333, the stock is about 14% below its 52-week high of ₹1,553. Over the past 3 years, profit grew 13% a year while the stock returned 4% a year, so part of the earlier valuation premium has already come off.
- Valuation is demanding: a trailing P/E of 66.55 implies an earnings yield of about 1.5%. Sustaining that multiple needs earnings growth well above the 3-year profit CAGR of 13%.
- The stock trades at 49.85 times book value, which leaves little valuation cushion if growth or margins disappoint.
- Sales growth has been modest for a premium multiple: 12% compounded over 5 years and 11% over both 3 and 10 years. The 19% TTM figure has not yet proven it can last beyond the long-run trend.
- Returns on equity are trending down: 98% (5-year average), 92% (3-year average), 73% (last year) and 67.85% currently. Profitability is still high, but the direction is negative.
- Recent shareholder returns have been weak. The stock has compounded at 4% a year over 3 years and 6% over 5 years, compared with 13% and 11% profit growth over the same periods. The valuation multiple has been shrinking.
- The dividend yield of 1.06% is low even with a payout ratio of 74.3%. Because the payout is already high, dividend growth depends almost entirely on earnings growth.
- The 52-week range of ₹1,159.4 to ₹1,553 is wide. The current price of ₹1,333 sits about 15% above the low, which shows the share price can swing a lot for a defensive consumer stock.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- FSSAI files three adjudication cases Sep 18
FSSAI filed three cases over NAN Excella Pro Stage 1 ('5 HMOs', 'Whey Protein' claims) and Lactogen Pro 1 ('easy to digest' claim), finding them in breach of Regulation 4(2) of the Infant Nutrition Regulations, 2020. The claims also raise questions under the IMS Act, 1992, which carries up to three years' imprisonment.
- Biotin quality failure confirmed Sep 18
A follow-up formula sample tested sub-standard for biotin, and the referral laboratory confirmed it on re-analysis. That points to a possible systemic formulation or quality-control gap, not a one-off testing error.
- Infant nutrition revenue at risk Sep 18
Milk Products and Nutrition brings in about ₹77,168 mn (33.4% of revenue) at 21-23% margins. Analyst scenarios put the hit at ₹200-450 cr revenue and 50-100 bps margin in a recall case, rising to ₹400-800 cr and 100-200 bps if sales are restricted for longer.
- Stock breaks below 200-DMA Sep 18
Shares closed 1.4% lower at ₹1,353.10, after an intraday high of ₹1,389. Another report put the drop at 2.3% to ₹1,336. The stock is now 14.2% below its Aug 7 record of ₹1,553, below its 200-DMA for the first time since Apr 9, and down 3% in a week and 8% in a month.
- Compliance costs and competitive threat Sep 18
Nestle may need to spend an estimated ₹160-250 cr over three years on quality and compliance systems, and the IMS Act bans all promotion for children under two. Any slip could let Danone India and Abbott India eat into its 60%+ infant formula share.
- Nuvama reiterates Buy, 20% growth Sep 16
Nuvama kept its Buy rating with a ₹1,383 target and expects Q2FY27 sales growth of 20% YoY on a 10.6% base, led by volume, premiumisation and e-commerce. The stock rose as much as 2.5% to ₹1,397.
- Premiumisation and distribution expansion Sep 16
Premium products made up 14% of the portfolio in FY26, up from 11% in 2021 (17% CAGR), and e-commerce is expected to pass 13%. Distribution reached 6.2 mn outlets in Jun-26, up from 5.7 mn in 2023.
- Outperforming Sensex year-to-date Sep 18
Even after the recent fall, the stock is up about 6% in calendar 2026 while the BSE Sensex is down 12.5%. It is also up 11.5% over six months and 11% over one year.
- Nestle disputes FSSAI findings Sep 18
Nestle says NAN Excella Pro and Lactogen Pro are fully compliant and that their labels were approved by FSSAI's expert committee. It has filed a detailed response saying the label statements are factual and backed by scientific literature.
- Long runway in infant nutrition Sep 18
India's infant nutrition market is projected to grow from $2.4 bn in 2025 to $4.26 bn by 2032, an 8.54% CAGR. Nestle's NAN and Lactogen hold over 60% of the market.
- Sector-wide FSSAI enforcement drive Sep 18
FSSAI has issued over 150 notices in recent months to companies including PepsiCo, Coca-Cola, Abbott, Danone, Mondelez and Ferrero, as well as e-commerce platforms and QSR chains. The pressure is industry-wide, though Nestle's case also involves a quality failure.
- Stock already above Nuvama target Sep 16
The ₹1,397 intraday high was about 1% above Nuvama's ₹1,383 target. That leaves little upside on the brokerage's own valuation despite the Buy rating.
- JP Morgan India Conference participation Sep 15
Nestle India will attend the JP Morgan India Conference in Mumbai on Sep 21, 2026. The company says no unpublished price-sensitive information will be shared.
TL;DR: Nestle India's operations look healthy: Nuvama expects 20% Q2FY27 sales growth, and premiumisation, e-commerce and a 6.2 mn-outlet network support that view. The stock is also beating a falling Sensex year-to-date. The FSSAI cases are the main risk, combining promotional-claim violations with potential IMS Act criminal liability and a confirmed biotin quality failure in a high-margin segment that makes up 33% of revenue. The chart has weakened, with the stock 14% off its high and below its 200-DMA. Watch for the outcome of the FSSAI adjudication, any management comments at the Sep 21 JP Morgan conference, and whether Q2 results confirm the growth story.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 4,659 | 5,037 | 4,600 | 5,268 | 4,814 | 5,104 | 4,780 | 5,504 | 5,096 | 5,644 | 5,667 | 6,748 | 6,378 |
| Expenses | 3,603 | 3,812 | 3,505 | 3,918 | 3,700 | 3,936 | 3,677 | 4,116 | 3,996 | 4,407 | 4,466 | 4,976 | 4,840 |
| Operating Profit | 1,056 | 1,225 | 1,095 | 1,350 | 1,114 | 1,168 | 1,103 | 1,388 | 1,100 | 1,237 | 1,201 | 1,772 | 1,538 |
| OPM % | 23% | 24% | 24% | 26% | 23% | 23% | 23% | 25% | 22% | 22% | 21% | 26% | 24% |
| Other Income | 24 | 140 | -77 | 37 | 39 | 298 | 4 | 9 | 4 | 2 | 170 | -18 | 16 |
| Interest | 33 | 31 | 23 | 26 | 32 | 32 | 35 | 38 | 47 | 46 | 28 | 37 | 42 |
| Depreciation | 107 | 111 | 109 | 110 | 113 | 122 | 150 | 155 | 157 | 163 | 174 | 205 | 188 |
| PBT | 939 | 1,222 | 886 | 1,251 | 1,009 | 1,312 | 922 | 1,205 | 900 | 1,029 | 1,168 | 1,513 | 1,324 |
| Tax % | 26% | 26% | 26% | 25% | 26% | 25% | 25% | 26% | 27% | 27% | 13% | 26% | 26% |
| Net Profit | 698 | 908 | 656 | 934 | 747 | 986 | 696 | 885 | 659 | 753 | 1,018 | 1,114 | 975 |
| EPS (₹) | 3.62 | 4.71 | 3.4 | 4.84 | 3.87 | 5.12 | 3.61 | 4.59 | 3.42 | 3.91 | 5.28 | 5.78 | 5.06 |
Profit & Loss
| Particulars | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Mar 2024 15m | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 24,437 |
| 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 | 18,689 |
| 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 | 5,747 |
| OPM % | 19% | 20% | 21% | 23% | 24% | 24% | 24% | 22% | 23% | 24% | 24% | 23% | 24% |
| Other Income | -391 | 140 | 177 | 259 | 247 | 146 | -112 | 107 | 116 | 159 | 352 | 160 | 170 |
| Interest | 3 | 91 | 92 | 112 | 129 | 164 | 202 | 155 | 119 | 145 | 136 | 158 | 154 |
| Depreciation | 347 | 354 | 342 | 336 | 370 | 370 | 391 | 403 | 429 | 568 | 540 | 699 | 730 |
| PBT | 814 | 1,545 | 1,839 | 2,429 | 2,673 | 2,813 | 2,857 | 3,256 | 4,038 | 5,289 | 4,447 | 4,610 | 5,034 |
| 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 | 3,860 |
| EPS (₹) | 2.92 | 5.19 | 6.35 | 8.33 | 10.21 | 10.8 | 10.99 | 12.4 | 15.55 | 20.4 | 17.19 | 18.38 | 20.03 |
| Div. Payout % | 83% | 61% | 68% | 69% | 168% | 93% | 91% | 89% | 56% | 79% | 79% | 65% | — |
Balance Sheet
| Particulars | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Cash Flow
| Particulars | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Ratios
| Particulars | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | Dec 2023 | Mar 2024 | Mar 2025 | Mar 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% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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73 extracted metrics + investor summaries across FY01–FY27.
Documents
Frequently Asked Questions about Nestle
What does Nestle India Ltd do?
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Company Information
Nestle India Limited is a subsidiary of Nestle which is a Swiss MNC. The company operates in the Food segment.
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