1. At a Glance
Nestlé India is basically the FMCG landlord of your kitchen—occupying every shelf with MAGGI that saves broke college students, NESCAFÉ that fuels IT zombies, and KITKAT that bribes employees into Friday meetings. With a ₹2.1 lakh crore market cap, 96% domestic sales, and 10 factories (Odisha factory on the way), it’s clear they want to feed every Indian from toddlers to tired software engineers. But with P/E north of 70, one might say we’re paying champagne prices for a company selling noodles that cook in “2 minutes” (read: 7).
2. Introduction
Nestlé India is that rich kid at the FMCG school who comes late, yet tops exams. While Britannia, ITC, and Amul keep grinding, Nestlé simply launches a new MAGGI variant or slaps millet into something, and boom—sales roll in. It’s a subsidiary of the Swiss giant Nestlé S.A. (owning 62.8%), which means every rupee you spend on MAGGI eventually contributes to a fondue party in Switzerland.
Despite being in India for over 60 years, the company still pretends like every new product is an innovation. MAGGI Oats with “Millet Magic”? Sounds like a jugaad recipe your mom forces on you when you say you want pizza. But hey, India is in love.
Of course, growth hasn’t been flawless. PAT in the latest quarter dropped 13% YoY, EPS slipped to ₹3.35 from ₹4.53, and margins fell from 25% to 21%. Yet investors continue to act like Nestlé stock is the Birkin bag of Dalal Street—ridiculously priced, but always sold out.
3. Business Model (WTF Do They Even Do?)
Nestlé India runs four main kitchens:
- Milk Products & Nutrition (21.5%)– Think Cerelac-fed babies, MILKMAID-fueled desserts, and your overpriced yogurt habit.
- Prepared Dishes & Cooking Aids (61.5%)– MAGGI, sauces, cereals, and basically the reason Swiggy feels threatened.
- Confectionery (0.12%)– KITKAT, Munch, Milkybar… the snacks HR uses to pacify employees after cutting bonuses.
- Beverages (0.05%)– NESCAFÉ, which has single-handedly kept India’s night shift economy alive.
Distribution muscle? Over5.2 million outletsand10,000+ distributors—basically, your kirana uncle doesn’t have your loan repayment slip, but he sure has MAGGI.
And now they’ve gone Direct-to-Consumer withmynestle.in. Because apparently, waiting for Blinkit to deliver a ₹20 MAGGI packet wasn’t instant enough.
4. Financials Overview
| Metric | Latest Qtr (Jun ’25) | YoY Qtr (Jun ’24) | Prev Qtr (Mar ’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹5,096 Cr | ₹4,814 Cr | ₹5,504 Cr | +5.9% | -7.4% |
| EBITDA | ₹1,088 Cr | ₹1,114 Cr | ₹1,377 Cr | -2.3% | -21.0% |
| PAT | ₹647 Cr | ₹747 Cr | ₹873 Cr | -13.4% | -25.9% |
| EPS (₹) | 3.35 | 3.87 | 4.53 | -13.4% | -26.0% |
Commentary:Revenue grew YoY, but margins collapsed like a badly made souffle. OPM crashed to 21% from 25% in March, thanks to higher raw material costs. EPS annualized = ₹13.4 → at CMP ₹1,089, we get aP/E of ~81. Translation: you’re paying premium prices for noodles whose masala tastemaker costs ₹2.
5. Valuation (Fair Value RANGE only)
- P/E Method:Industry PE ~60. Nestlé EPS annualized ~₹13.4 → FV Range: ₹800–₹1,000.
- EV/EBITDA:EV ₹2,11,142 Cr / EBITDA TTM ₹4,723 Cr ≈ 44.7x. Sector average ~35x → FV Range: ₹920–₹1,100.
- DCF (Back-of-Envelope):Assuming 8–10% growth for 10 years, WACC 10%, terminal growth 4% → FV ~₹950–₹1,150.
Fair Value Range:₹800–₹1,150“This FV range is for educational purposes only and is not investment advice.”
6. What’s Cooking – News, Triggers, Drama
- CAPEX Mania:₹5,000 Cr for 2023–25, with Odisha factory already eating up ₹900–₹1,000 Cr. That’s Nestlé’s way of saying “Even your grandchildren will eat MAGGI.”
- Leadership Change:MD Suresh Narayanan retiring July 2025 after 26 years. New boss, new style—expect either aggressive expansion or extra “2-minute” delays.
- Bonus Bonanza:1:1 bonus issue in Aug 2025—because if profits don’t grow, at least share counts will.
- Pet Food Drama:Divested Nestlé Business Services to Purina PetCare for ₹80 Cr. Cats and dogs clearly deserve more attention than human investors.
- Millets Push:Bajra, ragi, jowar—all being stuffed into cereals and noodles. Because nothing
