- Nestlé India’s net income increased by 27% year-over-year to 8.85 billion rupees, surpassing the estimated 8.58 billion rupees.
- Revenue reached 55 billion rupees, a 15% increase from the previous year, beating the forecasted 54.81 billion rupees.
- Total costs rose by 25% year-over-year to 48.1 billion rupees.
- Raw material costs increased by 13% year-over-year to 23.5 billion rupees, exceeding the estimated 21.47 billion rupees.
- Other income saw a significant rise of 90% year-over-year, reaching 84.4 million rupees.
- The declared dividend per share is 10 rupees.
- The pet care business achieved its highest-ever growth, showing high double-digit expansion since becoming part of Nestlé India.
- Nestlé India is investing approximately 65 billion rupees between 2020 and 2025 to enhance capabilities and capacity.
- Commodity prices for coffee remain firm, while cocoa prices have decreased yet are still considered high.
- Analyst recommendations include 11 buy ratings, 19 hold ratings, and 9 sell ratings.
Nestle India on Smartkarma
Analyst coverage of Nestle India on Smartkarma indicates a bearish sentiment from independent analysts such as Janaghan Jeyakumar, CFA and Brian Freitas. Jeyakumar’s report, “Quiddity Leaderboard BSE/SENSEX Jun25,” highlights potential index changes for BSE SENSEX, BSE 100, and BSE 200, with expectations of one-way flows totaling around US$560 million. The report suggests the possibility of two index changes for the SENSEX, along with potential ADDs/DELs for the other indices as the June 2025 index rebalancing approaches.
Similarly, analyst Brian Freitas discusses the SENSEX Index in his report “SENSEX Index Rebalance Preview,” forecasting two changes with a potential third change looming. The report emphasizes the need for passives to trade at high volumes and highlights the performance of forecast adds and deletes in previous periods. Freitas notes the underperformance of stocks with high valuations in the current year, indicating a volatile market landscape affecting Nestle India‘s prospects in the coming index rebalance.
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
Considering the Smartkarma Smart Scores for Nestle India, the company shows a promising long-term outlook. With a strong score of 5 in Resilience, Nestle India demonstrates its ability to withstand market challenges and maintain stability. This highlights the company’s solid foundation and strategic planning to navigate any uncertainties that may arise.
In addition, the high score of 4 in both Dividend and Momentum further boosts Nestle India‘s outlook. This indicates the company’s commitment to rewarding its investors through dividends and its positive upward trend in the market. With a balanced mix of growth potential and value, Nestle India positions itself well for future success in the food and beverage industry.
### Nestle India Ltd. manufactures brand name milk products and other food products. The Company’s products include Everyday dairy whitener, milk powder and ghee, Milkmaid sweetened condensed milk and Cerelac weaning foods. Nestle’s beverages include Nescafe and Sunrise coffee and Nesfit enriched glucose powder. Nestle also manufactures Maggi noodles, soups and sauces. ###
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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