BSE:500790

Stock Analysis Report

Executive Summary

Nestlé India Limited manufactures and sells food products in India.


Snowflake Analysis

Outstanding track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Nestlé India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500790 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

500790

-0.2%

IN Food

-0.07%

IN Market


1 Year Return

54.8%

500790

23.8%

IN Food

9.5%

IN Market

Return vs Industry: 500790 exceeded the Indian Food industry which returned 23.8% over the past year.

Return vs Market: 500790 exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

500790IndustryMarket
7 Day1.2%-0.2%-0.07%
30 Day5.0%0.8%-1.3%
90 Day14.2%10.0%1.9%
1 Year58.8%54.8%25.5%23.8%11.5%9.5%
3 Year172.9%159.9%79.7%74.4%23.6%16.7%
5 Year151.2%135.5%129.0%118.0%35.5%22.9%

Price Volatility Vs. Market

How volatile is Nestlé India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nestlé India undervalued compared to its fair value and its price relative to the market?

80.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500790 (₹16544.1) is trading above our estimate of fair value (₹3677.82)

Significantly Below Fair Value: 500790 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500790 is poor value based on its PE Ratio (81x) compared to the Food industry average (13.9x).

PE vs Market: 500790 is poor value based on its PE Ratio (81x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500790's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500790 is overvalued based on its PB Ratio (82.6x) compared to the IN Food industry average (0.9x).


Next Steps

Future Growth

How is Nestlé India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.8%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nestlé India has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nestlé India performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500790 has high quality earnings.

Growing Profit Margin: 500790's current net profit margins (15.9%) are higher than last year (14.3%).


Past Earnings Growth Analysis

Earnings Trend: 500790's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: 500790's earnings growth over the past year (22.6%) exceeds its 5-year average (18.3% per year).

Earnings vs Industry: 500790 earnings growth over the past year (22.6%) exceeded the Food industry 20.6%.


Return on Equity

High ROE: 500790's Return on Equity (101.9%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nestlé India's financial position?


Financial Position Analysis

Short Term Liabilities: 500790's short term assets (₹38.2B) exceed its short term liabilities (₹21.5B).

Long Term Liabilities: 500790's short term assets (₹38.2B) exceed its long term liabilities (₹29.8B).


Debt to Equity History and Analysis

Debt Level: 500790's debt to equity ratio (2.8%) is considered satisfactory.

Reducing Debt: 500790's debt to equity ratio has increased from 0.7% to 2.8% over the past 5 years.

Debt Coverage: 500790's debt is well covered by operating cash flow (4203.4%).

Interest Coverage: 500790's interest payments on its debt are well covered by EBIT (21.5x coverage).


Balance Sheet

Inventory Level: 500790 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500790's debt is covered by short term assets (assets are 71.8x debt).


Next Steps

Dividend

What is Nestlé India's current dividend yield, its reliability and sustainability?

0.98%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Nestlé India before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%0.6%markettop25%2.6%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 500790's dividend (0.98%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 500790's dividend (0.98%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: 500790's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500790's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.3%), 500790's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Suresh Narayanan 0

4.5yrs

Tenure

₹110,860,000

Compensation

Mr. Suresh Narayanan has been the Managing Director and Chairman of Nestle India Ltd., a subsidiary of Nestlé S.A. since August 01, 2015 and since October 29, 2015 respectively. Mr. Narayanan served as the ...


CEO Compensation Analysis

Compensation vs Market: Suresh's total compensation ($USD1.54M) is above average for companies of similar size in the Indian market ($USD1.10M).

Compensation vs Earnings: Suresh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Suresh Narayanan
Chairman & MD4.5yrs₹110.86mno data
Shobinder Duggal
Chief Financial Officer16.1yrs₹42.38mno data
Martin Roemkens
Director of Technical & Executive Director2.8yrs₹46.92mno data
Pramod Rai
Associate General Counsel of Corporate Legal0yrsno datano data
Shashank Nair
Corporate Communications Manager0yrsno datano data
Ravi Ramchandran
Head of Sales0yrsno datano data
Amit Narain
Head of Human Resources0yrsno datano data
Hari Nariani
Head of ISIT/Nestlé Business Excellence0yrsno datano data
B. Kannan
Head of Centre of Expertise - Sales0yrsno datano data
Sanjay Khajuria
Senior Vice President of Corporate Affairs0yrsno datano data

4.5yrs

Average Tenure

Experienced Management: 500790's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Suresh Narayanan
Chairman & MD4.5yrs₹110.86mno data
Martin Roemkens
Director of Technical & Executive Director2.8yrs₹46.92mno data
Rama Bijapurkar
Independent Non-Executive Director2.8yrs₹1.85mno data
Swati Piramal
Independent Non-Executive Director9.5yrs₹1.43mno data
Rajya Kanoria
Independent Non-Executive Director5.8yrs₹2.38mno data
Roopa Kudva
Independent Non-Executive Director1.1yrsno datano data
Ashok Mahindra
Independent Non-Executive Director8.8yrs₹2.08mno data
Rakesh Mohan
Independent Non-Executive Director3.8yrs₹1.85mno data

4.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: 500790's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nestlé India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nestlé India Limited
  • Ticker: 500790
  • Exchange: BSE
  • Founded: 1959
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹1.595t
  • Shares outstanding: 96.42m
  • Website: https://www.nestle.in

Number of Employees


Location

  • Nestlé India Limited
  • Nestlé House
  • Jacaranda Marg, 'M' Block
  • Gurugram
  • Haryana
  • 122002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500790BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 1998
NESTLEINDNSEI (National Stock Exchange of India)YesEquity SharesININRDec 1998

Biography

Nestlé India Limited manufactures and sells food products in India. The company offers milk products and nutrition, including dairy whitener, condensed and UHT milk, yoghurt, maternal and infant formula, baby food, and health care nutrition products; prepared dishes and cooking aids, such as noodles, sauces, seasonings, pasta, and cereals; powdered and liquid beverages comprises instant coffee and tea, and ready to drink beverages; and confectionery products, which includes bar countlines, tablets, and sugar confectionery products. It also offers vending systems and food services. The company also exports its products. Nestlé India Limited was incorporated in 1959 and is headquartered in Gurugram, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:37
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.