BSE:500790

Stock Analysis Report

Executive Summary

Nestlé India Limited manufactures and sells food products in India.

Snowflake

Fundamentals

Excellent balance sheet with solid track record and pays a dividend.


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


Market Performance


7 Day Return

3.7%

BSE:500790

-0.1%

IN Food

-2.9%

IN Market


1 Year Return

9.5%

BSE:500790

-14.8%

IN Food

-15.9%

IN Market

500790 outperformed the Food industry which returned -14.8% over the past year.

500790 outperformed the Market in India which returned -15.9% over the past year.


Share holder returns

500790IndustryMarket
7 Day3.7%-0.1%-2.9%
30 Day8.5%-1.0%-5.7%
90 Day16.5%-3.7%-11.0%
1 Year12.5%9.5%-13.7%-14.8%-14.1%-15.9%
3 Year91.4%82.5%41.6%37.6%15.7%9.5%
5 Year121.9%107.6%107.3%96.7%33.2%20.5%

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 based on future cash flows and its price relative to the stock market?

71.08x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Nestlé India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Nestlé India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Nestlé India is overvalued based on earnings compared to the IN Food industry average.

Nestlé India is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Nestlé India is poor value based on expected growth next year.


Price Based on Value of Assets

Nestlé India is overvalued based on assets compared to the IN Food industry average.


Next Steps

Future Growth

How is Nestlé India expected to perform in the next 1 to 3 years based on estimates from 24 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nestlé India's revenue is expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).

Nestlé India's earnings are expected to grow by 16.7% yearly, however this is not considered high growth (20% yearly).

Nestlé India's revenue growth is expected to exceed the India market average.

Nestlé India's earnings growth is positive but not above the India market average.

Nestlé India's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Nestlé India is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Nestlé India performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Nestlé India's year on year earnings growth rate has been positive over the past 5 years.

Nestlé India's 1-year earnings growth exceeds its 5-year average (14.6% vs 12.6%)

Nestlé India's earnings growth has not exceeded the IN Food industry average in the past year (14.6% vs 14.6%).


Return on Equity

Nestlé India made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Nestlé India used its assets more efficiently than the IN Food industry average last year based on Return on Assets.


Return on Capital Employed

Nestlé India has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Nestlé India's financial position?


Financial Position Analysis

Nestlé India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nestlé India's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nestlé India's level of debt (1.3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.5% vs 1.3% today).

Debt is well covered by operating cash flow (3983.8%, greater than 20% of total debt).

Nestlé India earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 104.9x debt.


Next Steps

Dividend

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

1.34%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Nestlé India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.65%).

Nestlé India's dividend is below the markets top 25% of dividend payers in India (2.67%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of Nestlé India's salary, the management and board of directors tenure and is there insider trading?

4.0yrs

Average management tenure


CEO

Suresh Narayanan 0

4.0yrs

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

Suresh's remuneration is higher than average for companies of similar size in India.

Suresh's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

The tenure for the Nestlé India management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

62.5yo

Average Age

The tenure for the Nestlé India board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • B. Murli

    Senior VP of Legal & Company Secretary

    • Tenure: 0.0yrs
    • Compensation: ₹28.03m
  • Shobinder Duggal

    CFO, Director of Finance & Control and Whole-Time Director

    • Tenure: 15.6yrs
    • Compensation: ₹42.38m
  • Hari Nariani

    Head of ISIT/Nestlé Business Excellence

    • Tenure: 0.0yrs
  • Suresh Narayanan

    Chairman & MD

    • Tenure: 4.0yrs
    • Compensation: ₹110.86m
  • B. Kannan

    Head of Centre of Expertise - Sales

    • Tenure: 0.0yrs
  • Ravi Ramchandran

    Head of Sales

    • Tenure: 0.0yrs
  • Amit Narain

    Head of Human Resources

    • Tenure: 0.0yrs
  • Martin Roemkens (49yo)

    Director of Technical & Whole Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹46.92m
  • Pramod Rai

    Associate General Counsel of Corporate Legal

    • Tenure: 0.0yrs
  • Shashank Nair

    Corporate Communications Manager

    • Tenure: 0.0yrs

Board Members

  • Rama Bijapurkar (62yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: ₹1.85m
  • Swati Piramal (63yo)

    Independent Non-Executive Director

    • Tenure: 9.0yrs
    • Compensation: ₹1.43m
  • Rajya Kanoria (64yo)

    Independent Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: ₹2.38m
  • Roopa Kudva (55yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Shobinder Duggal

    CFO, Director of Finance & Control and Whole-Time Director

    • Tenure: 15.6yrs
    • Compensation: ₹42.38m
  • Suresh Narayanan

    Chairman & MD

    • Tenure: 4.0yrs
    • Compensation: ₹110.86m
  • Ashok Mahindra

    Independent Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: ₹2.08m
  • Rakesh Mohan (72yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹1.85m
  • Martin Roemkens (49yo)

    Director of Technical & Whole Time Director

    • Tenure: 2.3yrs
    • Compensation: ₹46.92m

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: ₹1.201t
  • 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, b ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 12:35
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.