The share price of Nestle India fell on Friday, marking the sixth straight session of loss. Nestle India shares have declined more than 6.6% in six days, and the company is down 7% year to date.
Who is the CEO of Nestle India?
Suresh Narayanan is the Chairman and Managing Director of Nestlé India, a corporation with a market capitalization of more than INR 1,70,000 crore. Narayanan is credited with guiding the company through some of its most difficult times and reversing its fortunes.
Who is the new Nestlé CEO?
Nestlé appointed Mark Schneider as CEO in January 2017. He works with Nestlé’s 270,000 associates in 188 countries to improve people’s quality of life via the power of food and its 2,000+ brands.
Nestle India reported Q1 results on Thursday that fell short of analyst expectations in terms of revenue and profitability. In the first quarter of FY25, the FMCG major’s net profit increased by 7% to ₹746.6 crore from ₹698.3 crore in the previous year period.
What is Nestle India’s first-quarter result?
Nestle India’s Q1 results show a 7% increase in net profit to ₹746.6 crore, with a 3.3% increase in revenue year on year.
In Q1FY25, the Maggi-maker’s income from operations climbed by 3.3% to ₹4,814 crore from ₹4,658.5 crore YoY, with domestic volume growth of 1%.
Nestle India’s EBITDA climbed by 4.3% YoY to ₹1,103 crore, and its EBITDA margin increased by 20 basis points (bps) to 22.9% from 22.7%.
Here’s what brokerages are saying about Nestle India’s first-quarter results and shares:
Emkay Global
Emkay Global, a brokerage firm, believes that achieving meaningful internal growth is the key to Nestle India’s future, while price must be balanced to drive structural growth. It reduces topline expectations for FY25 by 3%, which carries over to FY26-27. This, combined with modifications to margin and other income, resulted in a 2-4% earnings reduction over FY25-27E.
Emkay Global’s value multiple remains at 65x, reflecting its operational expertise, pricing strength, and excellent parentage. Its stock valuation multiple of 63x for FY26E reflects the company’s excellent structural growth and capacity to maintain a double-digit profit growth pace, which appears challenging in the short term.
The brokerage company retains an ‘Add’ rating on Nestle India shares, citing current management’s execution prowess and strong parentage as reasons for the expected performance rebound. Nestle India’s share price forecast has been reduced from ₹2,700 to ₹2,650 per share by June 2025.
What are Nestle’s predicted results?
We have modified our full-year 2024 projection and now expect organic revenue growth of at least 3%. Underlying profits per share in constant currency are predicted to rise at a mid-single-digit rate. The underlying trading operating profit margin projection is intact, with a small improvement predicted.
Nuevama Institutional Equities
Nestlé India’s revenue and EBITDA increased by 3.3% and 4.1% year on year, respectively, falling short of our consensus projections. Domestic sales rose 4.2% year on year, with a 1% volume gain, hampered by high food inflation and heat waves, according to Nuvama Institutional Equities.
Volumes are expected to improve gradually. The brokerage believes that near-term margins in coffee and chocolates may be low, therefore it lowers its FY25E and FY26E EPS estimates by 2% and 1%, respectively. Nestle India shares are rated ‘Buy’ with a target price of ₹2,965, down from ₹3,010 before.
Motilal Oswal
There are no significant revisions to Motilal Oswal’s FY25 and FY26 EPS projections. It believes Nestle India’s portfolio is largely protected from local competition, therefore operational costs have not increased as much as their FMCG peers.
“We expect the company to maintain an EBITDA margin of approximately 25% in FY25/FY26. Motilal Oswal believes the stock is overvalued at 67x/61x FY25E/FY26E EPS.
What is Nestlé’s dividend in 2024?
Nestle India has declared an equity dividend of 3220.00%, or Rs 32.2 per share, for the fiscal year ending March 2024. At the current share price of Rs 2597.85, this translates into a dividend yield of 1.24%. The company has a solid dividend track record, having declared dividends on a steady basis over the past five years.
The stock price objective for Nestle India is ₹2,500 per share, and the rating remains ‘Neutral’.
Nestle India shares fell 0.41% to ₹2,470.30 on the BSE at 10:25 am.
What is Nestlé’s target?
Nestlé caters to nearly every age group. Starting with Gerber, they nourish infants, while their Nesquik brand caters to children and teenagers. Nescafé coffee is a popular option among adults worldwide.
