Icon times
Nestle Stock- Consistent Wealth Builder | Yadnya Investment Academy

Nestle Stock- Consistent Wealth Builder | Yadnya Investment Academy

Published on 22 April 2021 Views 243 Comments 1

Nestle India releases its Q4FY21 (Q1CY21) at its Board Meeting held on 20th April 2021. How did the company perform in this quarter? To know, go through this article.

Introduction:  Nestle Share Price Value Research

Nestle India, the leading player in the FMCG segment, has announced its quarterly results for Q4FY21 on 20th April 2021. The company has shown double-digit growth in Domestic Sales growth and has posted a robust net profit figure. Let analyse the quarterly result of the company in depth.

Q4FY21 Results:  Nestle Share Market Price

  • Nestle has posted strong growth in its Sales. It has grown sequentially by 5% to Rs. 3,611 Cr. from Rs. 3433 Cr. in December Quarter. While the sales have increased by 8.9% YoY, which was Rs. 3,325 Cr. in the quarter ended March 2020.

  • Under the sales, the company has reported growth of domestic sales in double-digit of 10.2% YoY, but the export is down by 12.9% YoY in Q4FY21.

  • Growth in sales is broad-based and primarily driven by volume and mix.

  • Across the board, all the nestle products are performing well. Still, Key brands like Maggi Noodles, KitKat, Nescafe Classic, Maggi Sauces, Milkmaid, Maggi Masala-Ae-Magic delivered robust performance and achieved double-digit growth.

  • The Operating Profit of the company stands at Rs. 960 Cr. in Q4FY21 with a stellar growth of 19% QoQ and 15% YoY. The operating Profit of Nestle was Rs. 836.16 Cr. in Q4FY20.

  • Another big positive thing for Nestle in this quarter is growth in their Operating Profit Margin from 25% in Q4FY20 and 24% in Q3FY21 to 27% in Q4FY21.

  • Profit Before Tax (PBT) of the company is around Rs. 812 Cr. in Q4FY21. It has grown by 21% quarterly and by 15% YoY from Rs. 704 Cr. in Q4FY20.

  • Further company has posted a strong Net Profit Figure of Rs. 602 Cr. in Q4FY21. It has grown by 24.6% from Rs. 483 Cr. in Q3FY21. Year on Year, Company has reported a growth of a significant 14.6% in Net Profit, Rs. 525 Cr. in the same quarter in the last financial year.

  • Also, Company is near around touching its all-time high levels of Net Profit Margin of 19%. The NPM is approximately 17% in Q4FY21, which was 14% in the previous quarter.

Return Ratios:

  • Return on Capital Employed (ROCE) of the company is very strong, i.e., 147.88 in the quarter ended 31st March 2021.

  • Whereas the Return on Equity (ROE) of Nestle is 105.76.

  • Nestle is a virtually debt-free company with a Debt-to-Equity ratio of a mere 0.02, while the company’s Interest Coverage Ratio is 18.13.

Valuation: Nestle Market Share Value

  • The average PE ratio of last 1 year, 3- Year, and 5 Year is 78.54, 72.88, and 68.32.

  • Stock is currently trading at a higher PE ratio than the Median PE ratio of last one year, 3- Year, and 5 Year of 79.11, which accounts for a premium valuation of around 10%-15%.

Q4FY21 Highlights:

  • Domestic Sales achieve double-digit growth, on a 10.7% strong growth base in Q4FY21.

  • Essential products boosted by in-home consumption posted double-digit growth. Key brands like Maggi Noodles, KitKat, Nescafe Classic, Maggi Sauces, Milkmaid, Maggi Masala-Ae-Magic delivered robust performance and achieved double-digit growth.

  • The E-Commerce channel grew by 66% and contributed 3.8% of domestic sales.

  • Recently, witnessing headwinds in commodity and packaging materials.

  • The company has taken responsible moves like Initiating vaccination camps for those eligible at factory locations.

  • Also, Nestle achieved plastic neutrality across all brands in 2020.

  • Nestle Share Dividend - Declared Interim Dividend of Rs. 25 per equity share.

  • Nestle Share Value - The company is having Earning Per Share of 62.46.

Conclusion: Nestle Share Growth

Nestle India has posted a strong quarterly result and has shown a stellar performance in its domestic sales by achieving double-digit growth of around 10.2%, which is phenomenal. The company looks optimistic and well prepared to deal with the ongoing situations caused due to the second wave of Covid-19.

 

Attachments
File Name
private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs 7499/Year.

Please login to view this free article.

This blog is available only for logged in users, please register and get access to view this article.

LATEST UPDATE

premium Premium
free Free
Read More

REPORTS


Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
16:10
Chat with InvestYadnya