Nestlé India Limited
Nestlé India Limited Fundamental Analysis
Nestlé India Limited (NESTLEIND.BO) shows weak financial fundamentals with a PE ratio of 78.36, profit margin of 14.90%, and ROE of 1.05%. The company generates $218.5B in annual revenue with moderate year-over-year growth of 3.43%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NESTLEIND.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNESTLEIND.BO demonstrates superior asset utilization.
Valuation Score
WeakNESTLEIND.BO trades at a premium to fair value.
Growth Score
WeakNESTLEIND.BO faces weak or negative growth trends.
Financial Health Score
ModerateNESTLEIND.BO shows balanced financial health with some risks.
Profitability Score
WeakNESTLEIND.BO struggles to sustain strong margins.
Key Financial Metrics
Is NESTLEIND.BO Expensive or Cheap?
P/E Ratio
NESTLEIND.BO trades at 78.36 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NESTLEIND.BO's PEG of 7.49 indicates potential overvaluation.
Price to Book
The market values Nestlé India Limited at 57.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 49.91 times EBITDA. This signals the market has high growth expectations.
How Well Does NESTLEIND.BO Make Money?
Net Profit Margin
For every $100 in sales, Nestlé India Limited keeps $14.90 as profit after all expenses.
Operating Margin
Core operations generate 19.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.05 in profit for every $100 of shareholder equity.
ROA
Nestlé India Limited generates $26.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nestlé India Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Nestlé India Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
NESTLEIND.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
78.36
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
57.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.05
vs 25 benchmark
ROA
Return on assets percentage
0.27
vs 25 benchmark
ROCE
Return on capital employed
0.54
vs 25 benchmark
How NESTLEIND.BO Stacks Against Its Sector Peers
| Metric | NESTLEIND.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 78.36 | 23.21 | Worse (Expensive) |
| ROE | 104.75% | 1251.00% | Weak |
| Net Margin | 14.90% | -5497.00% (disorted) | Strong |
| Debt/Equity | 0.11 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.85 | 2.44 | Weak Liquidity |
| ROA | 26.97% | -200095.00% (disorted) | Strong |
NESTLEIND.BO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nestlé India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.20%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
54.03%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
15.42%
Industry Style: Defensive, Dividend, Low Volatility
High Growth