Mehabe score: 2 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. 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 6.
Description
Nestle India Limited is a subsidiary of Nestle which is a Swiss MNC. The company operates in the Food segment. Site:NESTLEIND Main Symbol:NESTLEIND
Stock trades at 17876.0, below its 50dma 18158.39 and below its 200dma 18438.8. The stock remains bearish on technicals
The 52 week high is at 20609.15 and the 52week low is at 16116.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 93.46%
– has been maintaining a healthy dividend payout of 116.68%
Weakness
– Stock is trading at 82.69 times its book value
-The company has delivered a poor sales growth of 9.98% over past five years.
Competition
– The industry trades at a mean P/E of 55.0x. Nestle India trades at the industry’s max P/E of 74.28x. NESTLEIND trades at a P/E of 74.3x
– Industry’s mean G-Factor is 4.5 while the mean Piotski score is 6.0. NESTLEIND has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is -3.9%. The max 1- month return was given by Nestle India: a return of -0.74 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 3853.0 cr compared to Rs 3433.0 cr for period ended Dec 2020, a rise of 12.2% .
vis-vis 777.0 for period ended Dec 2020 .
Operating Margins contracted -1243.3 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 393.0 cr for period ended Dec 2021 and operating profit margin at 10.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs 40.1 compared to Rs 64.03 for previous quarter ended Sep 2021 and Rs 50.13 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 14709.0 cr for period ended Dec 2021 vis-vis sales of Rs 13350.0 cr for the period ended Dec 2020, a growth of 9.2%. The 3 year sales cagr stood at 9.2%.
Net Profit reported at Rs 2145.0 cr for period ended Dec 2021 vis-vis sales of Rs 2082.0 cr for the period ended Dec 2020, rising 2.9%.
Company recorded a healthy Net Profit CAGR of 10.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
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 113.0% compared to 93.0% over the last 3 Years. – The stock has given a return of 9% on a 1 Year basis vis-vis a return of 19% over the last 3 Years. – The compounded sales growth on a TTM bassis is 10% vis-vis a compounded sales growth of 9% over the last 3 Years. – The compounded profit growth on a TTM basis is 11% vis-vis a compounded profit growth of 13% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 12.35% vis-vis 12.31% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 16.99% vis-vis 16.93% for Sep 2021
Conclusion
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 93.46%
– has been maintaining a healthy dividend payout of 116.68% – Stock is trading at 82.69 times its book value
-The company has delivered a poor sales growth of 9.98% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 18158.39 and is trading at 17876.0. Shows a near term lack of buying interest.
