Nestlé India Limited

NESTLEIND.BO•packaged-foods

Current Price

1,201.75INR

per share

Fair Value

560.31INR

Overvalued

114.5%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 8.66%, lower than industry average of 8.86%.

Growth Trajectory

Profitability

In the growth phase company makes 19.98% profit on every dollar of sales, higher than industry average of 8.45%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.66% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

549.83B INR

Equity Value

540.22B INR

FCF Yield

31.57%

Average ROIC

49.01%

Cost of Capital

7.46%

P/E Ratio

35.19x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	203.58B INR	167.90B INR
Operating Income or EBIT	45.10B INR	34.34B INR
Interest Expense	1.51B INR	1.55B INR
Book Value Of Equity	40.10B INR	24.59B INR
Book Value Of Debt	11.67B INR	2.71B INR
Cash and Marketable Securities	2.06B INR	12.30B INR
Number of Shares Outstanding	964.16M	--
Minority interests	0 INR	0 INR
Current Stock Price	1201.75 INR	--
Effective Tax Rate	27.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

+12.39%

21.25%Company

8.86%Industry

Above Industry

Operating Margin

+13.71%

22.15%Company

8.44%Industry

Above Industry

Nestlé India Limited demonstrates superior performance in both growth and profitability compared to industry peers, indicating strong competitive advantages and operational excellence.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.87%

Reinvestment Rate

52.36%

Terminal value represents 58% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	317.54B INR	Add
Present Value (Cash Flow Over Next 10 Years)	232.29B INR	Add
Value of Operating Assets	549.83B INR	Sub-total
Debt	11.66B INR	Subtract
Minority Interests	—	Subtract
Cash	2.05B INR	Add
Value of Equity	540.22B INR	Sub-total
Number of Shares	964.16M shares	Divisor
Estimated Value per Share (Fair Value)	560.31 INR	Total
Current Market Price	1.20K INR	Reference

Financial Projections

Total FCF Present Value

232.29B INR

Avg Revenue Growth

6.68%

Avg Operating Margin

19.49%

Avg ROIC

49.01%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	223.19B INR	242.51B INR	263.51B INR	286.32B INR	311.11B INR	335.55B INR	359.23B INR	381.69B INR	402.50B INR	421.22B INR	440.80B INR
Growth Rate	9.62%	8.65%	8.65%	8.65%	8.65%	7.85%	7.05%	6.25%	5.45%	4.65%	4.65%
PROFITABILITY
Operating Income	49.44B INR	50.20B INR	52.64B INR	55.12B INR	57.64B INR	62.17B INR	66.55B INR	70.72B INR	74.57B INR	78.04B INR	81.67B INR
Operating Margin	22.15%	20.70%	19.97%	19.25%	18.52%	18.52%	18.52%	18.52%	18.52%	18.52%	18.52%
EBIT (1-tax)	36.09B INR	36.65B INR	38.43B INR	40.24B INR	42.08B INR	45.01B INR	47.78B INR	50.35B INR	52.65B INR	54.63B INR	57.17B INR
CASH FLOW
Reinvestment	7.44B INR	8.09B INR	8.79B INR	9.55B INR	9.42B INR	13.94B INR	13.23B INR	12.25B INR	11.02B INR	11.53B INR	29.93B INR
Free Cash Flow	28.64B INR	28.55B INR	29.63B INR	30.68B INR	32.65B INR	31.06B INR	34.55B INR	38.09B INR	41.62B INR	43.09B INR	27.23B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	643.81B INR
Present Value	26.85B INR	25.10B INR	24.42B INR	23.71B INR	23.65B INR	21.01B INR	21.73B INR	22.18B INR	22.35B INR	21.25B INR	—
EFFICIENCY
ROIC	72.60%	64.11%	58.89%	54.34%	50.33%	48.38%	44.67%	41.89%	39.74%	38.07%	8.87%
Cost of Capital	6.66%	6.66%	6.66%	6.66%	6.66%	7.10%	7.54%	7.99%	8.43%	8.87%	8.88%
Sales/Capital	2.59x	2.59x	2.59x	2.59x	2.59x	1.69x	1.69x	1.69x	1.69x	1.69x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)