Nestlé India Limited Fundamental Analysis (BSE: NESTLEIND.BO)
Nestlé India Limited Fundamental Analysis (BSE: NESTLEIND.BO)
Nestlé India Limited (BSE: NESTLEIND.BO) shows moderate financial fundamentals with a PE ratio of 55.56, profit margin of 15.96%, and ROE of 79.46%. The company generates $255.4B in annual revenue with moderate year-over-year growth of 3.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze NESTLEIND.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNESTLEIND.BO demonstrates superior asset utilization.
Valuation Score
ModerateNESTLEIND.BO shows balanced valuation metrics.
Growth Score
WeakNESTLEIND.BO faces weak or negative growth trends.
Financial Health Score
ExcellentNESTLEIND.BO maintains a strong and stable balance sheet.
Profitability Score
ExcellentNESTLEIND.BO achieves industry-leading margins.
Key Financial Metrics
Is NESTLEIND.BO Expensive or Cheap?
P/E Ratio
NESTLEIND.BO trades at 55.56 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NESTLEIND.BO's PEG of 1.45 indicates fair valuation.
Price to Book
The market values Nestlé India Limited at 39.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 36.30 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 $15.96 as profit after all expenses.
Operating Margin
Core operations generate 21.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $79.46 in profit for every $100 of shareholder equity.
ROA
Nestlé India Limited generates $28.76 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 $23.14B, signaling weaker underlying cash strength.
Free Cash Flow
Nestlé India Limited produces free cash flow of $19.26B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $9.99 in free cash annually.
FCF Yield
NESTLEIND.BO converts 0.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
55.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
39.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.79
vs 25 benchmark
ROA
Return on assets percentage
0.29
vs 25 benchmark
ROCE
Return on capital employed
0.59
vs 25 benchmark
How NESTLEIND.BO Stacks Against Its Sector Peers
| Metric | NESTLEIND.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 55.56 | 21.44 | Worse (Expensive) |
| ROE | 79.46% | 665.00% | Weak |
| Net Margin | 15.96% | -2330.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 1.07 | 2.27 | Neutral |
| ROA | 28.76% | 308.00% | Weak |
NESTLEIND.BO outperforms its industry in 2 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
51.07%
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