fmcg · NESTLEIND
Nestle India
Nestle India: PE above historical average. BROAD EXPANSION regime.
Price
₹1,530
Price 2026-08-03
5 day
+1.78%
Short-term move
1 month
+5.31%
Medium-term
Regime
BROAD EXPANSION
73% confidence
Market cap
₹283.8k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's BROAD EXPANSION regime affect Nestle India (NESTLEIND) in the fmcg sector?”
Price chart
₹1,521
+24.56% over period
About Nestle India
Nestlé India Limited engages in the manufacture and sale of food products in India and internationally. It offers milk products and nutrition, including dairy whitener, condensed milk, UHT milk, yogurt, maternal and infant formula, baby foods, health care nutrition; prepared dishes and cooking aids, such as noodles, sauces, seasonings, pasta, cereals, and pet foods; powdered and liquid beverages comprising instant coffee and tea, as well as ready to drink beverages; and confectionery items consisting of bar countlines, tablets, and sugar confectionery products. The company was incorporated in 1959 and is headquartered in Gurugram, India.
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -5.9% over 14 days) — not a reliable pattern.
52-week position
Trading at 102.1% of 52-week high
Technicals
RSI 14
72.1
Trend
uptrend
50 DMA
Above
200 DMA
Above
Key metrics
P/E ratio
81.2
71th pct · 7 quarterly points (limited history)
P/B
55.0
ROE
76.3%
Strong profitability — 76.3% return on equity
Market cap
₹283.8k Cr
Revenue growth
2300.0% YoY
Promoter
62.8%
52-week range
₹1,084.7 – ₹1,498.1
102.1% of high
RSI (14)
72.1
uptrend
vs 50 DMA
Above
DMA ₹1,429.15
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Nestle India scores 80/100 on fundamentals (strong). Nestle India: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 80/100 · STRONG · 0 signals detected
DuPont Analysis
ROE 86.7% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 86.68% is strong efficiency-driven and stable. Net margin 15.4%, asset turnover 1.85x, leverage 3.0x.
What This Means
Net margin of 15.4% means the company keeps ₹15.4 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 1.85x means the company efficiently uses its assets to generate revenue. Leverage of 3.0x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
55.0%
Operating
20.8%
Net
15.4%
Gross margin 55.0% → operating margin 20.8% → net margin 15.4%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.8x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 30.3x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.
Free Cash Flow
MODERATEFCF margin at 4.1% — moderate. Generating cash after investments.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| HINDUNILVR Hindustan Unilever | ₹2,138 | -1.7% | 48.9 | 21.6% | 430% | ₹5.2L Cr |
| ITC ITC Limited | ₹287 | +0.4% | 17.5 | 29.3% | -500% | ₹3.6L Cr |
| BRITANNIA Britannia Industries | ₹5,531 | +4.5% | 51.7 | 53.3% | 790% | ₹1.3L Cr |
| GODREJCP Godrej Consumer Products | ₹1,085.9 | +1.1% | 60.4 | 15.1% | 840% | ₹1.1L Cr |
| DABUR Dabur India | ₹425.8 | +0.6% | 42.5 | 16.2% | 730% | ₹80.4k Cr |
| COLPAL Colgate-Palmolive India | ₹2,077 | -0.4% | 42.7 | 81.6% | 910% | ₹56.5k Cr |
| GODFRYPHLP Godfrey Phillips | ₹2,247 | +1.6% | 21.8 | 26.6% | 1360% | ₹33.3k Cr |
| GILLETTE Gillette India | ₹7,624 | -2.6% | 47.9 | 66.4% | 320% | ₹25.6k Cr |
| NESTLEIND Nestle India | ₹1,530 | +5.8% | 81.2 | 76.3% | 2300% | ₹2.8L Cr |
Key Watchpoints
Breaks above ₹1606 (+5%)
Trend reversal confirmation
Breaks below ₹1454 (-5%)
Further downside risk
PE reverts to median of 74.8 (7 quarterly points (limited history))
Valuation normalization
Fmcg sector entering leadership
Sector rotation signal
Risk Flags
High revenue multiple. Market pricing in significant growth or margins expansion.
Profits are from core operations, not one-offs. High quality.
Strong insider alignment. Promoters have significant skin in the game.
➡️ 3 flags — 2 positive, 1 warning. Mixed profile.
Data Quality
News Correlation
50 articles scanned for fundamental themes
