Nestlé India Limited is the Indian subsidiary of Nestlé which is a Swiss multinational company. The company is headquartered in Gurgaon, Haryana. The company’s products include food, beverages, chocolate, and confectioneries.
The company was incorporated on 28 March 1959 and was promoted by Nestle Alimentana S.A. via a subsidiary, Nestle Holdings Ltd. As of 2020, the parent company Nestlé owns 62.76% of Nestlé India. The company has 9 production facilities in various locations across India.
Nestle India Ltd registered a 66% growth in its consolidated net profit at ₹628 crore for the third quarter which closed on 31 December 2022. The company had posted a consolidated net profit of ₹379 crore in the corresponding period a of the previous year.
The company’s consolidated revenues are up by 13.5% to Rs 4,257 crore Year-on-Year and have declined by 36% sequentially.
Its gross profit margin has contracted by 200 bps YoY in Q3FY22 but expanded sequentially by 220bps QoQ despite the costs of key commodities such as cereals, grains and coffee stand at a 10‐year high.
The management believes share loss due to LUP price hike is temporary and should normalise in the medium term. They are focussing on rural distribution expansion and innovation would gain momentum soon as it was dampened due to Covid. Considering the margins, edible oil and packaging inputs have fallen but ingredients remain expensive.
Nestle stock price seems to be moving along the trend line marked on the chart. The price acquires strong support near the 200-day exponential moving average, hence investors who are interested in a strong FMCG stock can pick up when the price corrects near to the moving average. However the stock is priced around Rs 19000 which makes it difficult to afford.
Disclaimer: We do not endorse or encourage you to take trades or investment decisions based upon our posts/research, all of your trading and investment activities are your own and should be taken through consultation with reputed financial advisors. The analysis posted on this website has been created by involving multiple mediums which are present over the Internet.