Nestle India, one of the tops (FMCG) food and beverage firms in India, has been doing incredibly well lately. The business has experienced strong domestic growth over the past ten years and is well-known for its well-liked products, including Maggi noodles and KitKat chocolates.
In this piece, we’ll examine Nestle India’s stock performance over the past few years and forecast its share price range for 2024 to 2030.
We’ll also determine whether Nestle India is a worthwhile investment given the state of the market. But first thing first. Let’s learn about Nestle India.
Nestle India Q4 Results: Net profit rises 4.4% on year to ₹655.6 crore
- Nestle India reported a net profit of ₹655.61 crore for Q4CY23, marking a 4.4% increase from the same quarter last year.
- Revenue in Q4CY24 grew by 8% year-on-year to ₹4,600.42 crore, driven by strong growth momentum in e-commerce and out-of-home channels.
- However, net profit declined by 27.8% sequentially from the previous quarter, and revenue from operations saw a decrease of 8.7%.
- Nestle India achieved significant milestones, surpassing ₹19,000 crore in total sales growth in 2023, with a growth rate exceeding 13.3%.
- The board approved the declaration of a third interim dividend of ₹7 per equity share for the financial year 2023-24, with a record date set for February 15.
- Nestle India also announced the slump sale of its Nestlé Business Services (NBS) Division to Purina PetCare India, a subsidiary of Nestlé S.A., for ₹79.8 crore, effective from July 1, 2024.
Latest news about Nestle India
Nestle India recently disclosed its agreement to pay royalty to its parent company, Nestle SA, beginning July 1, 2024. The royalty fee, capped at 5.25 percent of sales revenue and increasing annually by 0.15 percent, aims to strengthen the company’s alignment with its parent’s strategies. This move comes amidst Nestle India’s positive financial performance, with a 4.4 percent YoY increase in net profit and an 8 percent YoY rise in revenue in Q4CY23.
About Nestle India
Nestlé India’s enduring journey in the country traces back to 1912, when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited. Over the decades, Nestlé responded to India’s evolving landscape, establishing its roots by setting up a factory in Moga, Punjab, in 1961.
By fostering the growth of the dairy sector, introducing agricultural services, and building milk collection centers, Nestlé contributed to the transformation of Moga into a thriving milk district and an industrial hub.
With an unwavering commitment to India’s development, the company has become an integral part of the nation’s progress, generating employment for millions and providing trusted products like NESCAFÉ, MAGGI, KIT KAT, and more. Nestlé India’s emphasis on innovation, sustainability, and community well-being underscores its role as a responsible contributor to India’s growth story.
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| When | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| April 2024 | ₹2,530.00 | ₹2,200.00 |
| May 2024 | ₹2,492.61 | ₹2,167.49 |
| June 2024 | ₹2,582.34 | ₹2,245.52 |
| July 2024 | ₹2,556.52 | ₹2,223.06 |
| August 2024 | ₹2,658.78 | ₹2,311.98 |
| September 2024 | ₹2,765.13 | ₹2,404.46 |
| October 2024 | ₹2,710.92 | ₹2,357.32 |
| November 2024 | ₹2,819.35 | ₹2,451.61 |
| December 2024 | ₹2,847.55 | ₹2,476.13 |
In April 2024, the maximum price of Nestle India is expected to reach ₹2,530.00, while the minimum is anticipated to be around ₹2,200.00. As the year progresses, May may see fluctuations with a maximum projected at ₹2,492.61 and a minimum of ₹2,167.49. By December 2024, the price is expected to peak at ₹2,847.55 and bottom out at ₹2,476.13, showcasing potential market dynamics throughout the year.
| When | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2025 | ₹3,132.30 | ₹2,409.46 |
| February 2025 | ₹3,163.94 | ₹2,433.80 |
| March 2025 | ₹3,230.38 | ₹2,484.91 |
| April 2025 | ₹3,198.40 | ₹2,460.31 |
| May 2025 | ₹3,105.24 | ₹2,388.65 |
| June 2025 | ₹3,244.98 | ₹2,496.14 |
| July 2025 | ₹3,181.35 | ₹2,447.19 |
| August 2025 | ₹3,279.74 | ₹2,522.88 |
| September 2025 | ₹3,319.10 | ₹2,553.15 |
| October 2025 | ₹3,405.40 | ₹2,619.53 |
| November 2025 | ₹3,490.53 | ₹2,685.02 |
| December 2025 | ₹3,647.60 | ₹2,805.85 |
In January 2025, the maximum price of Nestle India is expected to reach ₹3,132.30, while the minimum is anticipated to be around ₹2,409.46. As the year progresses, fluctuations may occur, with February potentially seeing a maximum projected at ₹3,163.94 and a minimum of ₹2,433.80. Similarly, March may witness a maximum price of ₹3,230.38 and a minimum of ₹2,484.91. By December 2025, the prices are expected to peak at ₹3,647.60 and bottom out at ₹2,805.85, showcasing potential market dynamics throughout the year.
| Year | Maximum Price | Minimum Price |
|---|---|---|
| 2026 | 4,374.69 | 3,365.14 |
| 2027 | 5,333.36 | 4,102.58 |
| 2028 | 6,502.11 | 5,001.62 |
| 2029 | 7,926.98 | 6,097.67 |
| 2030 | 9,664.09 | 7,433.92 |
In 2026, the maximum price of Nestle India is expected to reach 4,374.69, while the minimum is anticipated to be around 3,365.14. As the years progress, 2027 may see a rise with a maximum projected at 5,333.36 and a minimum of 4,102.58. Similarly, in 2028, the maximum price is forecasted to reach 6,502.11, with a potential minimum of 5,001.62. By 2029, the maximum price is anticipated to peak at 7,926.98, while the minimum could be around 6,097.67. Looking ahead to 2030, the maximum price of Nestle India is projected to surge to 9,664.09, with a potential minimum of 7,433.92.
Financial Condition of Nestle India: Last 5 years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 12,369 | 13,350 | 14,741 | 16,897 | 18,783 |
| Expenses (Rs. Crores) | 9,443 | 10,149 | 11,178 | 13,191 | 14,434 |
| Operating Profit (Rs. Crores) | 2,926 | 3,202 | 3,562 | 3,706 | 4,349 |
| Other Income (Rs. Crores) | 247 | 146 | -112 | 107 | 227 |
| Interest (Rs. Crores) | 129 | 164 | 202 | 155 | 146 |
| Depreciation (Rs. Crores) | 370 | 370 | 391 | 403 | 419 |
| Profit Before Tax (Rs. Crores) | 2,673 | 2,813 | 2,857 | 3,256 | 4,011 |
| Net Profit (Rs. Crores) | 1,968 | 2,082 | 2,118 | 2,391 | 2,971 |
| EPS (Rs) | 204.16 | 215.98 | 219.72 | 247.94 | 308,15 |
| Dividend Payout (%) | 168% | 93% | 91% | 89% |
Over the last five years, Nestle India has exhibited a steady and consistent growth in its financial performance. Sales revenue has shown a consistent upward trajectory, increasing from Rs. 12,369 Crores in 2019 to Rs. 18,783 Crores in 2023, reflecting the company’s ability to expand its market presence. However, the growth in expenses has also been notable, primarily driven by rising operating costs, which expanded from Rs. 9,443 Crores in 2019 to Rs. 14,434 Crores in 2023. Despite this, Nestle India managed to maintain a healthy operating profit, which climbed from Rs. 2,926 Crores in 2019 to Rs. 4,349 Crores in 2023.
The company faced a challenging year in 2021, marked by a dip in other income and increased interest expenses. Nonetheless, it rebounded in subsequent years. Notably, the company’s dividend payout percentage has seen a decline over these years, suggesting a more conservative approach in distributing profits to shareholders. Nestle India’s earnings per share (EPS) also witnessed significant growth, culminating at Rs. 308.15 in 2023, reflecting the company’s commitment to enhancing shareholder value.
In summary, Nestle India has demonstrated resilience and growth over the last five years, even amidst economic challenges. Its consistent revenue growth, improving profitability, and strategic financial management indicate a positive outlook for the company’s future.
FAQS
It is anticipated that Nestle India per share price will increase to ₹2,847.55 by the end of 2024.
The share price target of Nestle India for 2025 is anticipated to potentially be around ₹3,647.60.
The Nestle India share price target for 2030 is expected to potentially reach around ₹9,664.09 by the end of the year.
Is Nestle India’s stock a good investment opportunity?
Based on positive trends and a strong financial track record, Nestle India’s shares could be a good investment opportunity.
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Conclusion: Should you buy Nestle India in 2024?
Nestle India has exhibited remarkable performance in recent years, with consistent growth in both revenue and profitability. Despite facing challenges such as the slump sale of its Nestlé Business Services Division and changes in its financial year schedule, the company has maintained its strong market position. With a promising outlook for its share price target in the coming years, Nestle India remains an attractive investment opportunity. Its enduring commitment to innovation, sustainability, and delivering high-quality products positions it well for continued success in the future.
In every term, Nestle India is a good hold.
Disclaimer: This is not a financial advice. This article ‘Nestle India share price target 2024 to 2030’ is for educational purpose only. Please consult a SEBI registered financial advisor before investing.
What did we learn?
- 1 Nestle India Q4 Results: Net profit rises 4.4% on year to ₹655.6 crore
- 2 Latest news about Nestle India
- 3 About Nestle India
- 4 How to buy Nestle India (NSE: NESTLEIND) shares?
- 5 Nestle India Share Price Target: 2024 to 2030
- 6 Financial Condition of Nestle India: Last 5 years
- 7 FAQS
- 8 Conclusion: Should you buy Nestle India in 2024?
