Nestle
Nestle
Food Products F&OKey Fundamentals
LargecapPackaged FoodsFood ProductsTapetide Score
Data-driven rating, 0–100. How it works →
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
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoNestle India Ltd commands a market cap of ₹2,67,515 Cr with a PE of 70.7x and a price-to-book of 52.2x, reflecting significant premium valuation. The company is virtually debt-free with a 3-year ROE of 92% and TTM sales growth of 19%, though its 5-year sales CAGR of ~12% has been modest relative to its valuation multiple.
- Virtually debt-free balance sheet, providing strong financial flexibility and resilience during economic downturns
- Exceptional return on equity with a 3-year average ROE of 92% and 5-year average of 98%, indicating highly efficient capital deployment
- TTM revenue growth accelerated to 19%, well above the 5-year compounded sales CAGR of 12%, signaling improving demand momentum
- TTM profit growth of 25% outpaces TTM sales growth of 19%, reflecting margin expansion and operating leverage
- Consistent dividend payout ratio of 74.3% with a current yield of 1.01%, offering reliable income in a low-debt structure
- 10-year compounded profit CAGR of 15% demonstrates long-term earnings compounding ability across market cycles
- 10-year stock price CAGR of 16% shows sustained long-term wealth creation for shareholders
- Company has actively reduced debt, further strengthening an already clean balance sheet
- PE ratio of 70.7x is significantly elevated compared to broader market and FMCG sector averages, leaving limited margin of safety
- Price-to-book of 52.2x implies the stock trades at an extreme premium to its net asset value
- 5-year compounded sales growth of only 12% is modest for a stock commanding a 70x earnings multiple
- Last year ROE declined to 73% from a 5-year average of 98%, suggesting potential deterioration in capital efficiency
- 1-year stock CAGR of 14% and 3-year CAGR of 8% show decelerating price returns, lagging the 10-year CAGR of 16%
- Dividend yield of just 1.01% offers limited income compensation for the premium valuation paid
- 5-year stock CAGR of only 6% indicates prolonged periods of muted returns despite earnings growth, suggesting valuation compression risk
- 3-year sales CAGR of 11% is in line with the 10-year average, indicating limited acceleration in the underlying business growth rate
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- HFSS labelling regulatory risk Aug 27
FSSAI pushing front-of-pack warning labels for high fat/sugar/salt foods. Industry estimates ~80% of India's $100B+ packaged food market could be classified HFSS, threatening widespread red warnings across Nestle's portfolio.
- Five-session stock decline Sep 7
Stock fell to ₹1,398.8, down 0.83% on the day and 8.49% over the past month, underperforming the Nifty FMCG index's 7.62% decline. PE ratio remains elevated at 72.93x trailing earnings.
- Customs duty penalties Aug 26
Two customs orders demand ₹11.1 crore and ₹2.47 crore in duty plus penalties. Company states no material financial impact and plans to challenge both orders.
- Sugar double-standards scrutiny Aug 27
Indian Cerelac contains 2.7g added sugar per serving vs zero in the UK; Indian KitKats have 4.5% cocoa solids vs 22% in Australia. Consumer backlash and Supreme Court intervention amplify reputational risk.
- Strong Q1 FY27 earnings Aug 27
Q1 FY27 revenue rose 25.75% to ₹6,385.74 crore with net profit up 48.27% to ₹958.68 crore. Project Shark efficiency program generates ₹1.5-2 billion in annual savings.
- Solar stake for renewables Aug 27
Acquired 26% equity stake in Radiance KA Sunshine Seven Pvt Ltd for ₹7.61 crore to support captive renewable energy goals.
- Solid long-term outperformance Sep 7
Stock up 17.77% over the past year, significantly outperforming Nifty's 4.11% decline and Nifty FMCG's 18.81% fall over the same period.
- Proactive health reformulation Aug 27
Reduced added sugars by up to 30% in infant cereals over five years and launched Zero Added Sucrose Cerelac variants. Products launched since 2015 now contribute over 5% of sales.
- GST penalty reduced on appeal Sep 9
GST order-in-appeal reduced penalty to ₹12.97 lakh with tax liability of ₹1.30 crore for FY17-20. Company plans to challenge the order further.
- Investor meet concluded Aug 31
One-on-one meeting with an institutional investor held Aug 31 in Mumbai. Company confirmed no unpublished price-sensitive information was shared under SEBI Regulation 30.
TL;DR: Nestle India delivered strong Q1 FY27 results with 25.75% revenue growth and 48.27% profit growth, and the stock has outperformed both Nifty and Nifty FMCG over the past year. However, near-term sentiment is weak with five consecutive sessions of decline and an 8.49% monthly drop. The biggest structural risk is FSSAI's push for HFSS warning labels, which could affect a large portion of the product portfolio, though Nestle's global R&D scale and ongoing reformulation efforts position it better than most peers. The trend is deteriorating short-term on regulatory overhang and selling pressure, but fundamentals remain solid if the company continues adapting proactively.
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 in Rs | 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 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 | 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
Log in to view Nestle insights
73 extracted metrics + investor summaries across FY01–FY27.
Documents
Frequently Asked Questions about Nestle
What does Nestle India Ltd do?
Where is Nestle India Ltd (NESTLEIND) listed?
Which sector does Nestle India Ltd belong to?
What is the market capitalisation of Nestle India Ltd?
What is the PE ratio of Nestle India Ltd?
What is the 52-week high and low of Nestle India Ltd?
Does Nestle India Ltd pay dividends?
What is the Return on Equity (ROE) of Nestle India Ltd?
Company Information
Nestle India Limited is a subsidiary of Nestle which is a Swiss MNC. The company operates in the Food segment.
For AI agents and developers
Reading this as an AI agent, LLM or automated pipeline? Every page on Tapetide is also published as clean Markdown — no navigation, no scripts, just the data. Fetch https://tapetide.com/stocks/NESTLEIND.md for Nestle India Ltd: company profile, latest price, key fundamentals, the Tapetide Score, growth rates, quarterly and annual financial statements, shareholding pattern, technical indicators, analyst ratings and exchange filings.
Append .md to any Tapetide URL for the
same treatment. A full index of what we publish is at /llms.txt and /llms-full.txt. For live,
structured queries instead of documents, use our MCP server.