- Nestle India‘s net income in the fourth quarter was 8.85 billion rupees, exceeding estimates of 8.58 billion rupees but representing a 5.2% decrease year-over-year.
- Revenue for the quarter reached 55 billion rupees, a 4.4% increase compared to the previous year and exceeding the estimate of 54.81 billion rupees.
- Domestic sales rose by 4.2% year-over-year to 52.3 billion rupees, surpassing the estimate of 50.62 billion rupees.
- Export sales were 2.13 billion rupees, a decrease of 8.6% from the previous year but were above estimates of 2.06 billion rupees.
- Total costs increased by 6.4% year-over-year, amounting to 43.1 billion rupees.
- Raw material costs were 23.5 billion rupees, marking an 8.8% year-over-year increase and exceeding the estimate of 21.47 billion rupees.
- Other income declined by 68% year-over-year to 84.4 million rupees.
- A dividend of 10 rupees per share was announced.
- The pet care business reported unprecedented high double-digit growth since its integration into the Nestlé India business.
- Nestle India is investing approximately 65 billion rupees between 2020 and 2025 to enhance new capabilities and capacity.
- Commodity prices remain firm for coffee, while cocoa prices have corrected but still remain high.
- Prices continue to be stable for edible oils, but milk prices have cyclically firmed up with the onset of summers.
- The investment analyst ratings include 11 buys, 19 holds, and 9 sells for the company.
Nestle India on Smartkarma
Analyst coverage of Nestle India on Smartkarma reveals insights from top independent analysts. Janaghan Jeyakumar, CFA, in the report “Quiddity Leaderboard BSE/SENSEX Jun25,” indicates a bearish sentiment with expectations of significant one-way flows for indices like Sensex and BSE. Jeyakumar forecasts potential index changes for SENSEX, BSE 100, and BSE 200, highlighting possible ADDs/DELs for each index.
Additionally, Brian Freitas provides analysis in the report “SENSEX Index Rebalance Preview,” also leaning bearish. Freitas anticipates two changes for the Sensex with a potential third change on the horizon. The report emphasizes the need for passives to trade at specific delivery volumes and discusses the performance of forecasted adds and deletes in recent months. Sector balance will play a crucial role in determining inclusions in the index rebalance process.
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 shows a promising long-term outlook. The company received strong scores across various factors, with high marks in Dividend and Resilience. This indicates that Nestle India is performing well in terms of distributing dividends to shareholders and demonstrating resilience in uncertain market conditions. Additionally, the company scored well in Momentum, suggesting positive market momentum for Nestle India.
Nestle India Ltd. is known for manufacturing a variety of food products, including milk items like Everyday dairy whitener and Cerelac weaning foods, as well as popular beverages such as Nescafe coffee. With a solid foundation in place and favorable Smart Scores, Nestle India appears to be positioned for continued success in the long run.
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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