Mehabe score: 5 G Factor: 4 Piotski Score: 9 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 9.
Description
Nestle India Limited is an India-based company engaged in food business. The Company operates in the Food segment.Site:NESTLEINDMain Symbol:NESTLEIND
Stock trades at 19368.0, above its 50dma 19310.9. It also trades above its 200dma 17980.73. The stock remains bullish on techicals
The 52 week high is at 20609.15 and the 52week low is at 15375.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 18.65% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 68.06%
– has been maintaining a healthy dividend payout of 109.71%
Weakness
– Stock is trading at 83.46 times its book value
-The company has delivered a poor sales growth of 10.31% over past five years.
Competition
– The industry trades at a mean P/E of 59.0x. Nestle India trades at the industry’s max P/E of 84.5x. NESTLEIND trades at a P/E of 84.5x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 9.0. NESTLEIND has a G-Factor of 4 and Piotski scoreof 9.
– Average 1 month return for industry is -5.2%. The max 1- month return was given by Nestle India: a return of -4.0 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 3883.0 cr compared to Rs 3542.0 cr for period ended Sep 2020, a rise of 9.6%
Operating Profits reported at Rs 948.0 cr for period ended Sep 2021 vis-vis 884.0 for period ended Sep 2020 .
Operating Margins contracted -54.4 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 64.03 compared to Rs 55.86 for previous quarter ended Jun 2021 and Rs 60.89 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 14403.0 cr for period ended TTM vis-vis sales of Rs 13350.0 cr for the period ended Dec 2020, a growth of 7.3%. The 3 year sales cagr stood at 8.4%.
Net Profit reported at Rs 2242.0 cr for period ended TTM vis-vis sales of Rs 2082.0 cr for the period ended Dec 2020, rising 7.1%.
Company recorded a healthy Net Profit CAGR of 11.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 2454.0 cr for period ended Dec 2020 vis-vis Rs 2295.0 cr for period ended Dec 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 106.0% compared to 68.0% over the last 3 Years. – The stock has given a return of 20% on a 1 Year basis vis-vis a return of 26% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 6% vis-vis a compounded profit growth of 19% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 12.31% vis-vis 12.43% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 16.93% vis-vis 16.88% for Jun 2021
Conclusion
– has reduced debt.
– is almost debt free.
– has delivered good profit growth of 18.65% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 68.06%
– has been maintaining a healthy dividend payout of 109.71% – Stock is trading at 83.46 times its book value
-The company has delivered a poor sales growth of 10.31% over past five years.
