Nestle's descending performance - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Nestle's descending performance

Mar 7, 2001

Nestle India has declared a 20% growth in profits for the year ended December '00. The company's topline growth at 8.7% was however, disappointing. While domestic sales grew at a slower rate of 7%, exports were higher by 16% during the year.

Year ended December (Rs m) FY00 FY01 Change
Sales 15,439 16,775 8.7%
Other Income 83 107 28.9%
Profit after Tax/(Loss) 985 1,186 20.4%
Net profit margin (%) 6.4% 7.1%  
No. of Shares (eoy) (m) 96.4 96.4  
Diluted Earnings per share 10.2 12.3  
P/E (at current price)   43  

Revenue growth of the company in the December quarter slowed down to 4% compared to its outstanding performance in the past two quarters ( 2QFY01-15% and 3QFY01-13%). This could be due to stiff competition in the chocolate confectionery market from its competitor Cadbury and in the ketchup segment HLL has given it a tough time.

At the current market price of Rs 531 Nestle trades at a P/E multiple of 43 times with a market cap to sales ratio of 3 times. The company's current valuations are comparatively higher than Cadbury which gets P/E multiple of 32 times. But this is because Nestle has a broader product portfolio as compared to Cadbury.


Equitymaster requests your view! Post a comment on "Nestle's descending performance". Click here!

  

More Views on News

NESTLE Announces Quarterly Results (1QFY21); Net Profit Up 11.1% (Quarterly Result Update)

Sep 23, 2020 | Updated on Sep 23, 2020

For the quarter ended June 2020, NESTLE has posted a net profit of Rs 5 bn (up 11.1% YoY). Sales on the other hand came in at Rs 31 bn (up 1.7% YoY). Read on for a complete analysis of NESTLE's quarterly results.

NESTLE Announces Quarterly Results (3QFY20); Net Profit Up 38.4% (Quarterly Result Update)

Feb 14, 2020 | Updated on Feb 14, 2020

For the quarter ended December 2019, NESTLE has posted a net profit of Rs 5 bn (up 38.4% YoY). Sales on the other hand came in at Rs 31 bn (up 8.7% YoY). Read on for a complete analysis of NESTLE's quarterly results.

NESTLE 2017-18 Annual Report Analysis (Annual Result Update)

Mar 25, 2019 | Updated on Mar 25, 2019

Here's an analysis of the annual report of NESTLE for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of NESTLE. Also includes updates on the valuation of NESTLE.

NESTLE 2016-17 Annual Report Analysis (Annual Result Update)

Dec 20, 2018 | Updated on Dec 20, 2018

Here's an analysis of the annual report of NESTLE for 2016-17. It includes a full income statement, balance sheet and cash flow analysis of NESTLE. Also includes updates on the valuation of NESTLE.

More Views on News

Most Popular

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

My Top Stock to Buy in this Market Selloff (Profit Hunter)

Sep 22, 2020

The recent correction offers a great opportunity to buy this high conviction smallcap stock.

Can the Nifty Fall to 10,200? (Fast Profits Daily)

Sep 24, 2020

The Nifty has reached an important support level today. If it breaks then we could see further downside.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

NESTLE SHARE PRICE


Sep 28, 2020 (Close)

TRACK NESTLE

NESTLE - NESTLE COMPARISON

COMPARE NESTLE WITH

MARKET STATS