- Net Income: 7.47 billion rupees, up 7% year-on-year (YoY), but lower than the estimated 8.33 billion rupees.
- Revenue: 48.1 billion rupees, up 3.2% YoY, falling short of the estimated 51.35 billion rupees.
- Domestic Sales: 46.1 billion rupees, increased by 4.3% YoY.
- Export Sales: 1.84 billion rupees, decreased by 7.5% YoY.
- Total Costs: 38.4 billion rupees, up 2.7% YoY.
- Raw Material Costs: 19.4 billion rupees, down 2% YoY.
- Other Income: 391.2 million rupees, up 63% YoY.
- The company focuses on building its distribution infrastructure.
- Despite lower consumption growth, food inflation concerns, and volatile commodity prices, growth was achieved across product groups.
- CMD Suresh Narayanan highlights that almost a fourth of the growth was mix and volume-led, and this trend is expected to strengthen.
- Five out of top twelve brands saw double-digit growth, with the beverages business showing “strong” double-digit growth.
- E-commerce contributed to 7.5% of domestic sales.
- Commodity prices for coffee and cocoa are facing unprecedented highs, with a continuous price rally.
- Cereals and grains are experiencing structural cost increases backed by Minimum Support Price (MSP).
- There is relative stability in the prices of milk, packaging, and edible oils.
- Analyst Recommendations: 19 buys, 15 holds, 4 sells.
A look at Nestle India Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Nestle India holds a promising long-term outlook based on its overall performance indicators. With a strong resilience score of 5, the company demonstrates a solid ability to navigate challenges and maintain stability. Additionally, Nestle India scores well in both dividend and momentum, with ratings of 4 for each, indicating a favorable dividend payout and positive market momentum. While the growth score stands at 3, the company still shows potential for expansion and future development. However, with a value score of 2, there may be room for improvement in terms of valuation compared to other factors.
Nestle India Ltd. is a prominent manufacturer of branded milk products and a variety of food items, including popular products like Maggi noodles, Nescafe coffee, and Cerelac weaning foods. The company’s diverse product portfolio caters to a wide range of consumer preferences, solidifying its position in the market. With a strong emphasis on quality and innovation, Nestle India continues to be a key player in the food and beverage industry, offering products that resonate with consumers across various segments.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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