The IIFL Research Report: Buy Nestle India

IIFL Research has buy call on Nestle India with a target price of Rs 2725. The current market price of Nestle India is Rs 2619

About Nestle India:

Nestlé India is a leading food and beverage company in India. It is a subsidiary of Nestlé S.A., the world's largest food and beverage company. Nestlé India's product portfolio includes a wide range of food and beverage products, including infant nutrition, dairy products, beverages, culinary products, and pet care products. The company has a strong distribution network and a wide reach across India. Nestlé India is committed to providing safe, high-quality, and nutritious products to its consumers. The company is also committed to sustainable practices and has a number of initiatives in place to reduce its environmental impact.

52 Week Price Trend:

Nestlé India Limited's current market price (CMP) stands at Rs 2619. This falls between its 52-week high of Rs 2770.75 and 52-week low of Rs 1788. The CMP indicates that Nestlé is currently trading lower than its previous peak but higher than its recent bottom. This suggests that the stock has been experiencing some volatility and may be indicating a potential for further movement in either direction. Investors should consider these historical price ranges and monitor market trends to make informed trading decisions.

Stratzy's Analysis:

NESTLEIND has been rated AA by Stratzy's MOST framework, which assesses Management, Outlook, Safety, and Trend. This indicates that NESTLEIND has medium fundamental risks, with strong performance in these four pillars. The AA rating suggests that NESTLEIND is a relatively safe investment, with potential for growth and stability.

Company's Fundamentals:

NESTLEIND's stock metrics indicate a significant premium in valuation. Its Price-to-Earnings (PE) ratio of 82.96 suggests that investors are paying a high price for each rupee of earnings. The high Price-to-Book (PB) ratio of 80.56 implies that the company's market value is well above its accounting net worth. However, the low Dividend Yield of 0.65% raises concerns about the company's commitment to shareholder returns and its potential for capital appreciation.

Fundamental and Technical information provided in this blog were last updated on 09 Mar, 2024

Disclaimer:The information and recommendations presented in this section, including any attached reports, are sourced from third-party providers through diverse channels. The views and opinions expressed within these materials belong solely to their respective creators. These views and opinions do not necessarily reflect the position of Stratzy Fintech Pvt Ltd. Stratzy explicitly disclaims any guarantees, express or implied, regarding the accuracy and reliability of the provided content. We strongly advise consulting with a licensed financial advisor before making any investment decisions based on this information. Remember, seeking independent financial advice is crucial.