Nestle India has been in the spotlight recently due to fluctuations in its share price and overall market performance. As of October 21, 2024, the share price of Nestle India stands at ₹2,495.80, reflecting a decrease of 3.33% from the previous closing price of ₹2,581.75. This decline is part of a broader trend where the stock has seen a drop of approximately 7.77% over the past week and 0.8% over the last month.
Main Points
- 1 Market Overview and Key Metrics
- 2 Nestle India Shares 52-Week Performance
- 3 Nestle India Shares Technical Analysis
- 4 Nestle India Shares Important Levels
- 5 Nestle India Shares Fundamental Analysis
- 6 Financial Ratios
- 7 Bullish Reasons and Future Prospects
- 8 Factors Influencing Share Price
- 9 Nestle India Shares Analyst Predictions
- 10 Today’s Update News
Market Overview and Key Metrics
Nestle India Ltd, a leading player in the FMCG sector, boasts a market capitalization of approximately ₹2,47,316 crore. The company’s PE ratio is currently at 76.04, indicating that investors are willing to pay ₹76 for every ₹1 of earnings, which is considered high compared to industry averages. The company’s EPS (Earnings Per Share) stands at ₹33.65, while the PB (Price to Book) ratio is notably high at 74.51.
- 52-Week High: ₹2,778.00
- 52-Week Low: ₹2,280.00
The stock’s volatility is evident as it has experienced significant price movements within this range.
From a technical standpoint, Nestle India’s stock has shown some bearish signals recently. The 50-day moving average crossover appeared on October 7, 2024, suggesting potential further declines as historically there has been an average price decline of about -2.47% within 30 days following this signal.
- Support Level: ₹2,280
- Resistance Level: ₹2,778
These levels are critical for traders looking to make informed decisions regarding buy or sell actions in the near term.
Nestle India has demonstrated solid fundamental performance over the years:
- Revenue Growth: The company reported an annual revenue growth of 27.51%, significantly outperforming its three-year CAGR of 18.09%.
- Return on Equity (ROE): A robust ROE of around 135% indicates effective management and profitability.
- Dividend Yield: Currently at about 1.26%, reflecting the company’s commitment to returning value to shareholders through dividends.
Financial Ratios
| Ratio | Value |
|---|---|
| PE Ratio | 76.04 |
| EPS (TTM) | ₹33.65 |
| Market Cap | ₹2,47,316 Cr |
| Dividend Yield | 1.26% |
| ROE | 135% |
These ratios suggest that while Nestle India is performing well in terms of profitability and shareholder returns, its high PE ratio may indicate that the stock is overvalued relative to its earnings.
Bullish Reasons and Future Prospects
Despite recent share price declines, several analysts remain bullish on Nestle India’s long-term prospects:
- Strong Brand Portfolio: Nestle’s diverse product range from Maggi noodles to Nescafe coffee continues to dominate market share.
- Market Position: As one of India’s leading FMCG companies, Nestle benefits from strong brand loyalty and consumer trust.
- Growth Potential: Analysts predict that with ongoing innovations and expansions into new markets, Nestle can sustain its growth trajectory.
Several factors could influence Nestle India’s share price moving forward:
- Global Economic Conditions: Changes in commodity prices and inflation rates can impact profit margins.
- Regulatory Changes: Any shifts in government policies regarding food safety or import duties may affect operational costs.
- Market Sentiment: Investor sentiment driven by quarterly earnings reports and market trends will play a significant role.
Market analysts have mixed views regarding the short-term movement of Nestle India’s shares:
- Some predict further declines if bearish trends continue.
- Others suggest potential rebounds based on strong fundamentals and brand strength.
Today’s Update News
As of today, October 21, 2024:
- Nestle India shares have decreased by approximately 3.33%.
- Analysts are closely monitoring upcoming quarterly results which could provide more insights into future performance.
Investors are encouraged to stay updated on market movements and company announcements that could influence share performance.
