Nestle India Ltd. (NESTLEIND) AI Stock Analysis

• Market Cap: ₹2.34T
• Dividend Yield: 0.97%
• Average Volume (3M): 91.55K
• Price to Earnings (P/E): 62.3
• Beta (1Y): 0.79
• Revenue Growth: 6.25%
• EPS Growth: -8.80%
• Country: IN
• Employees: 8,736
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 5.28
• Shares Outstanding: 1,928,314,300
• 10 Day Avg. Volume: 119,223
• 30 Day Avg. Volume: 91,548
• PEG Ratio: 188.65
• Price to Book (P/B): 53.71
• Price to Sales (P/S): 10.70
• P/FCF Ratio: 216.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,495.00
• Price Target Upside: 13.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 17.02
• Revenue Forecast (FY): ₹225.91B

• Rating: 68 Neutral
• Price Target: ₹1,408.00 ▲(6.70% Upside)
• Action: Reiterated Date: 10/07/25
• Date: Action: Reiterated 10/07/25

Nestle India Ltd. has a strong financial foundation with consistent revenue growth and profitability, which is the most significant factor in its score. However, technical indicators suggest neutral to bearish momentum, and the high P/E ratio indicates potential overvaluation. The lack of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong brand portfolio

A deep portfolio of leading consumer brands provides durable pricing power, high shelf presence and broad consumer loyalty across India. Brand strength supports resilient demand, easier product line extensions and sustained marketing ROI, anchoring long-term revenue stability.

Consistent revenue growth and robust margins

Sustained revenue growth combined with high gross and net margins indicates structural profitability and efficient cost management. These margin levels provide buffer versus input cost cycles and fund reinvestment in marketing, innovation and distribution without immediate margin erosion.

Healthy balance sheet and high ROE

Low leverage and very high ROE signal efficient capital use and financial flexibility. A sturdy balance sheet supports investment for growth, withstands demand shocks, and lowers financing risk, enabling strategic initiatives and sustained shareholder returns over the medium term.

Negative Factors

Weak free cash flow conversion

A low conversion of net income into free cash flow constrains the firm’s ability to self-fund capex, brand investments or shareholder returns. Persistently weak FCF conversion increases reliance on working capital management or external financing for growth initiatives.

Slight EBIT decline indicates cost pressure

A falling EBIT suggests emerging margin pressure from input costs or operational inefficiencies. If sustained, this trend can compress operating leverage, reduce reinvestment capacity and necessitate price increases that could impact volume in price-sensitive segments.

Limited public guidance and event disclosure

Absence of recent earnings call detail and corporate event disclosures reduces visibility into management strategy, near-term priorities and capital allocation. Limited public guidance can hinder investors’ ability to assess execution risk and long-term planning credibility.

Nestle India Ltd. Business Overview & Revenue Model

Company Description

Nestlé India Limited manufactures and sells food products in India. The company provides milk products and nutrition, including dairy whitener, condensed and UHT milk, yoghurt, maternal and infant formula, baby food, and health care nutrition products; prepared dishes and cooking aids, such as noodles, sauces, seasonings, pasta, and cereals; powdered and liquid beverages comprising instant coffee and tea, as well as ready to drink beverages; and confectionery products consisting of bar countlines, tablets, and sugar confectionery products. It also exports its products internationally. The company was incorporated in 1959 and is headquartered in Gurugram, India.

How the Company Makes Money

Nestle India generates revenue primarily through the sale of its wide range of food and beverage products. The company's revenue model is based on both retail and institutional sales, with a strong distribution network that ensures product availability across urban and rural markets. Key revenue streams include sales of instant noodles, coffee, chocolates, and dairy products, with MAGGI noodles and Nescafé being significant contributors. Additionally, Nestle India benefits from its strong brand equity and consumer loyalty, which help drive sales. The company also engages in strategic partnerships with local suppliers and retailers, enhancing its supply chain efficiency and market reach. Seasonal promotions and advertising campaigns further boost sales, contributing to overall earnings.

Nestle India Ltd. Financial Statement Overview

Summary

Nestle India Ltd. demonstrates strong financial performance with consistent revenue growth and robust profitability. The balance sheet is healthy with low leverage and high return on equity. However, there are some weaknesses in cash flow generation that need attention.

Income Statement

Nestle India Ltd. demonstrates strong revenue growth with a steady increase over the years, culminating in a revenue growth rate of 2.91% from 2024 to 2025. The company maintains robust profitability with a gross margin of 56.42% and a net profit margin of 15.98% for 2025. EBIT and EBITDA margins are solid, indicating efficient operations. However, the slight decline in EBIT from 2024 to 2025 suggests potential cost pressures.

Balance Sheet

The company has a healthy balance sheet with a moderate debt-to-equity ratio of 0.29, showcasing low leverage. A return on equity of 79.98% reflects high efficiency in generating profits from shareholders' equity. The equity ratio of 32.89% indicates a solid equity base, although a higher ratio would provide more stability against liabilities.

Cash Flow

Free cash flow decreased significantly from 2024 to 2025, impacting the growth rate negatively. However, the operating cash flow to net income ratio of 0.92 signifies good cash generation relative to net income. The free cash flow to net income ratio of 0.29 indicates room for improvement in converting earnings into free cash.

Breakdown	TTM	Mar 2025	Mar 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	204.84B	201.30B	194.63B	168.32B	146.96B	133.13B
Gross Profit	88.87B	80.81B	78.87B	63.22B	58.83B	53.28B
EBITDA	49.49B	49.53B	47.13B	37.45B	33.00B	32.10B
Net Income	31.08B	32.08B	31.96B	23.91B	21.18B	20.82B
Balance Sheet
Total Assets	0.00	121.93B	105.23B	91.17B	83.68B	80.38B
Cash, Cash Equivalents and Short-Term Investments	761.80M	956.50M	8.19B	11.63B	7.99B	24.93B
Total Debt	0.00	11.67B	3.45B	2.71B	2.66B	1.47B
Total Liabilities	-40.10B	81.83B	71.67B	65.20B	62.88B	58.80B
Stockholders Equity	40.10B	40.10B	33.41B	24.59B	19.46B	20.19B
Cash Flow
Free Cash Flow	0.00	9.97B	24.58B	22.89B	16.25B	21.25B
Operating Cash Flow	0.00	30.05B	43.40B	28.39B	23.60B	26.04B
Investing Cash Flow	0.00	-18.86B	-14.04B	-4.95B	-20.45B	-4.71B
Financing Cash Flow	0.00	-18.41B	-31.33B	-21.21B	-20.19B	-19.55B

Nestle India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1319.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NESTLEIND, the sentiment is Negative. The current price of 1319.55 is above the 20-day moving average (MA) of 1272.92, above the 50-day MA of 1287.95, and above the 200-day MA of 1223.35, indicating a bearish trend. The MACD of -19.46 indicates Positive momentum. The RSI at 29.01 is Positive, neither overbought nor oversold. The STOCH value of 9.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NESTLEIND.

Nestle India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNITDSPR	73 Outperform	₹957.41B	61.38	―	0.83%	11.13%	15.51%
MARICO	69 Neutral	₹973.54B	54.57	―	1.42%	22.56%	4.73%
BRITANNIA	69 Neutral	₹1.41T	53.41	―	1.24%	7.21%	8.68%
NESTLEIND	68 Neutral	₹2.34T	62.28	―	0.97%	6.25%	-8.80%
DABUR	66 Neutral	₹813.33B	39.88	―	1.62%	2.68%	1.07%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GODREJCP	59 Neutral	₹1.06T	62.79	―	1.67%	5.77%	―

Nestle India Ltd. Corporate Events

Nestlé India Sets Record Date for Potential FY26 Interim Dividend

Nestlé India has announced that its Board of Directors will consider the declaration of an interim dividend for the financial year 2025-26 at a meeting scheduled for 30 January 2026, alongside review of the unaudited financial results for the third quarter and nine months ended 31 December 2025. The company has set 6 February 2026 as the record date to determine shareholders eligible for any interim dividend, with payment, if approved, to commence on or after 26 February 2026, while maintaining a trading window closure on its equity shares from 1 January to 1 February 2026 in line with securities regulations.

Nestle India to Review Q3 and Nine-Month Financial Results, Announces Trading Window Closure

Nestle India Limited has announced that its Board of Directors will review the unaudited financial results for the third quarter and nine months ending December 31, 2025, on January 30, 2026. Correspondingly, to comply with SEBI’s Prohibition of Insider Trading regulations, the company will enforce a trading window closure from January 1 to February 1, 2026, which underscores its adherence to regulatory compliance and transparency in financial disclosures.