Commodity
HIGHTrigger: Management said price increases had dented volumes and that commodity inflation was forcing difficult pricing decisions.
Monitor: commodity
Nestle India Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +15.1%AverageRe-Entry
In , Nestle India Ltd (FMCG - Dairy Products) is outperforming Nifty 500 with +15.1% relative strength. Fundamentals: Average.
Nestle India Ltd Key Facts
- PE Ratio
- 83.9x
- Market Cap
- ₹2,85,853 Cr
- PAT Growth YoY
- +27%
- Revenue Growth YoY
- +23%
- OPM
- 26.0%
- RS vs Nifty 500
- +15.1%
Strong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
🌐FII stake decreased 2.1% this quarter
🏛️DII accumulation — stake up 2.3%
💰Trading 77% above estimated fair value — significant premium
Key Risks
1. Commodity
HIGH2. Regulatory
MEDIUM3. Geopolitical
LOWKey Numbers
PAT Growth YoY
+27%
Inflection Up
Revenue YoY
+23%
Accelerating
Operating Margin
26.0%
+100 bps YoY
PE Ratio
83.9
Current Price
₹1,482
Dividend Yield
0.81%
Fundamental Score
53/100
Average
3Y PAT CAGR
-6%
Market Cap
2.9L Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
What Are the Key Risks for Nestle India Ltd?
Earnings deceleration risks from management commentary
Regulatory
MEDIUMTrigger: Management said legal limits constrain category communication and make growth in milk nutrition harder.
Monitor: regulatory
Geopolitical
LOWTrigger: Management flagged geopolitics as an external factor that could affect supply chains and future output profiles.
Monitor: geopolitical
What Is Nestle India Ltd's Management Saying?
Key quotes from recent conference calls
“Point to point between this year and last year, the coffee prices are up 75%. It is very difficult for any company [Risk (commodity): HIGH]”
“it is a highly regulated category and it is media dark and consumer dark in that sense. So anybody who were to come [Risk (regulatory): MEDIUM]”
“you all know the consequences of geopolitics and how it is going to play with the supply chain and future output profiles [Risk (geopolitical): LOW]”
How Fast Is Nestle India Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +23% | -3% | Accelerating |
| PAT (Net Profit) | +27% | -6% | Inflection Up |
| OPM | 26.0% | +100 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
Other Top FMCG - Dairy Products Stocks Beating Nifty 500
Frequently Asked Questions: Nestle India Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Nestle India Ltd's latest quarterly results?
Nestle India Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +27.3% (turning around (inflection up))
- Revenue Growth YoY: +22.6%
- Operating Margin: 26.0% (stable)
Is Nestle India Ltd's profit growing or declining?
Nestle India Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +27.3% (latest quarter)
- PAT Growth QoQ: +11.3% (sequential)
- 3-Year PAT CAGR: -5.7%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Nestle India Ltd's revenue growth trend?
Nestle India Ltd's revenue growth trend is accelerating.
- Revenue Growth YoY: +22.6%
- Revenue Growth QoQ: +19.1% (sequential)
- 3-Year Revenue CAGR: -2.6%
How is Nestle India Ltd's operating margin trending?
Nestle India Ltd's operating margin is stable.
- Current OPM: 26.0%
- OPM Change YoY: +1.0% basis points
- OPM Change QoQ: +5.0% basis points
What is Nestle India Ltd's 3-year profit and revenue CAGR?
Nestle India Ltd's long-term compounding rates
- 3-Year Profit CAGR: -5.7%
- 3-Year Revenue CAGR: -2.6%
Is Nestle India Ltd's growth accelerating or decelerating?
Nestle India Ltd's earnings growth is turning around (inflection up) with positive momentum on a sequential basis.
- YoY Acceleration: -17.8% bps
- Sequential Acceleration: -23.0% bps
What is Nestle India Ltd's trailing twelve month (TTM) performance?
Nestle India Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹3,000 Cr
- TTM PAT Growth: +9.1% YoY
- TTM Revenue: ₹23,000 Cr
- TTM Revenue Growth: +14.6% YoY
- TTM Operating Margin: 22.7%
Is Nestle India Ltd overvalued or undervalued?
Nestle India Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 83.9x
- Price-to-Book: 55.5x
What is Nestle India Ltd's current PE ratio?
Nestle India Ltd's current PE ratio is 83.9x.
- Current PE: 83.9x
- Market Cap: 2.9 Lakh Cr
- Dividend Yield: 0.81%
How does Nestle India Ltd's valuation compare to its history?
Nestle India Ltd's current PE is 83.9x.
- Current PE: 83.9x
- Valuation Assessment: Significantly Overvalued
What is Nestle India Ltd's price-to-book ratio?
Nestle India Ltd's price-to-book ratio is 55.5x.
- Price-to-Book (P/B): 55.5x
- Book Value per Share: ₹27
- Current Price: ₹1482
Is Nestle India Ltd a fundamentally strong company?
Nestle India Ltd is rated Average with a fundamental score of 52.52/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +22.6% (10% weight)
- PAT Growth YoY: +27.3% (10% weight)
- PAT Growth QoQ: +11.3% (10% weight)
- Margins stable (10% weight)
Is Nestle India Ltd debt free?
Nestle India Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹444 Cr
What is Nestle India Ltd's return on equity (ROE) and ROCE?
Nestle India Ltd's return ratios over recent years
- FY2025: ROCE 96.0%
- FY2026: ROCE 85.0%
Is Nestle India Ltd's cash flow positive?
Nestle India Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹5,000 Cr
- Free Cash Flow (FCF): ₹4,000 Cr
- CFO/PAT Ratio: 144% (strong cash conversion)
What is Nestle India Ltd's dividend yield?
Nestle India Ltd's current dividend yield is 0.81%.
- Dividend Yield: 0.81%
- Current Price: ₹1482
Who holds Nestle India Ltd shares — promoters, FII, DII?
Nestle India Ltd's shareholding pattern (Mar 2026)
- Promoters: 62.8%
- FII (Foreign): 9.7%
- DII (Domestic): 12.4%
- Public: 15.1%
Is promoter holding increasing or decreasing in Nestle India Ltd?
Nestle India Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 62.8% (Mar 2026)
- Previous Quarter: 62.8% (Dec 2025)
- Change: 0.00% (stable)
How long has Nestle India Ltd been outperforming Nifty 500?
Nestle India Ltd has been outperforming Nifty 500 for 3 consecutive weeks, indicating early-stage outperformance.
Is Nestle India Ltd a new momentum entry or an established outperformer?
Nestle India Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the key risks in Nestle India Ltd?
Nestle India Ltd has 3 key risks worth monitoring
- [HIGH] Commodity — Management said price increases had dented volumes and that commodity inflation was forcing difficult pricing decisions.
- [MEDIUM] Regulatory — Management said legal limits constrain category communication and make growth in milk nutrition harder.
- [LOW] Geopolitical — Management flagged geopolitics as an external factor that could affect supply chains and future output profiles.
What did Nestle India Ltd's management say in the latest earnings call?
In Q3 FY25, Nestle India Ltd's management highlighted
- "Point to point between this year and last year, the coffee prices are up 75%. It is very difficult for any company [Risk (commodity): HIGH]"
- "it is a highly regulated category and it is media dark and consumer dark in that sense. So anybody who were to come [Risk (regulatory): MEDIUM]"
- "you all know the consequences of geopolitics and how it is going to play with the supply chain and future output profiles [Risk (geopolitical): LOW]"
Is Nestle India Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Nestle India Ltd may be worth studying
- Earnings growing at +27.3% YoY
- Revenue growth is accelerating — +22.6% YoY
- Cash flow is positive — CFO ₹5,000 Cr
What is the investment thesis for Nestle India Ltd?
Nestle India Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +22.6% YoY
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Commodity
What is the future outlook for Nestle India Ltd?
Nestle India Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: accelerating
- Margin Trend: stable
- Valuation: Significantly Overvalued
- Key Risk: Commodity
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.