Nestlé India Ltd. is a leading player in the fast-moving consumer goods (FMCG) sector, renowned for its diverse range of food and beverage products. As of October 17, 2024, the Nestlé India share price is ₹2,378.45, reflecting a decrease of 3.40% from the previous trading session. The stock opened at ₹2,474.95 and has seen a trading volume of over 2.23 million shares so far today.
Nestlé India Share Price in Today’s Market
In today’s trading session, the Nestlé India share price reached a high of ₹2,474.95 and a low of ₹2,365.00. The current market capitalization stands at approximately ₹229,392 crore, underscoring its significant role in the Indian FMCG sector.
Nestlé India Financial Overview
Nestlé India has an enterprise value of ₹228,755.44 crore and approximately 96.42 crore shares outstanding. The company’s P/E ratio is reported at 70.74, while its P/B ratio stands at 56.15. Recent financial reports indicate a sales growth rate of 44.37% and an impressive profit growth rate of 64.52%. With cash reserves of ₹778.85 crore and total debt amounting to ₹31.14 crore, Nestlé India demonstrates solid financial fundamentals.
Nestlé India Share Pros & Cons
Pros:
- Strong Profit Growth: A profit growth rate of 64.52% reflects effective management and operational efficiency.
- High Sales Growth: A sales growth rate of 44.37% indicates robust demand for its products.
- Healthy ROE and ROCE: With ROE at 135.61% and ROCE at 185.43%, the company shows strong returns on equity and capital employed.
Cons:
- High Valuation Ratios: A P/E ratio of 70.74 raises concerns about whether the stock is overvalued compared to industry peers.
- Market Volatility: A beta of 0.36 indicates lower volatility compared to the broader market, but still presents risks.
- Low Dividend Yield: With a dividend yield of only 1.31%, income-focused investors may find this stock less appealing.
Indiahood Recommendation on Nestlé India Share: Buy or Sell?
Considering the current market conditions and the fundamentals surrounding Nestlé India Ltd., it is advisable to hold your position for now while monitoring market trends closely. Investors should wait for clearer signals before making new investments.
Conclusion
In summary, while the recent decrease in Nestlé India’s share price may raise concerns among investors, its strong sales and profit growth provide compelling reasons to consider holding onto this stock. However, potential investors should also be aware of high valuation ratios before making investment decisions.
Disclaimer
This article is for informational purposes only and should not be considered as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.
