Nestle India share price target 2024, 2025, 2026, 2027, 2030 prediction: Buy or Sell?
Nestle India Ltd. is the largest food company in India and a subsidiary of the Swiss multinational Nestle S.A. The company offers a wide range of products in the food and beverage industry, such as milk and nutrition, beverages, prepared dishes and cooking aids, chocolates and confectionery, and pet care. In this article, we will look at Nestle India share price target 2024, 2025, 2026, 2027, 2030.
In this blog post, we will analyze the performance, prospects, and challenges of Nestle Stock. We will also look at whether Nestle India share are buy or sell.
Consider reading: Olectra Greentech Share Price Target
Page Contents
Nestle India share price target 2024, 2025, 2026, 2027, 2030
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2024 | 2,880.30 | 3,064.16 | 2,972.23 |
| 2025 | 3,600.38 | 3,830.20 | 3,715.29 |
| 2026 | 4,500.47 | 4,787.75 | 4,644.11 |
| 2027 | 5,625.59 | 5,984.69 | 5,805.14 |
| 2028 | 7,031.98 | 7,480.86 | 7,256.42 |
| 2029 | 8,789.98 | 9,351.07 | 9,070.53 |
| 2030 | 10,987.47 | 11,688.84 | 11,338.16 |
| 2031 | 13,734.34 | 14,611.05 | 14,172.70 |
| 2032 | 17,167.93 | 18,263.82 | 17,715.87 |
| 2033 | 21,459.91 | 22,829.77 | 22,144.84 |
Nestle India share price live chart and History
Nestle India share: Buy or Sell?
Nestle India Stock Split
In a landmark move, Nestle India, the country’s leading food company, executed its inaugural stock split in October 2023, with a 1:10 ratio. This split transformed each share, originally valued at Rs. 10, into ten shares with a face value of Re. 1 each. This strategic decision, effective from January 5, 2024, was aimed at democratizing stock ownership, enhancing accessibility for a broader spectrum of investors.
Key Highlights of the Stock Split:
- Enhanced Accessibility and Affordability: Prior to the split, Nestle India’s high share price limited its accessibility to many potential investors. Post-split, the reduced share price invites a wider pool of retail investors, enhancing overall market participation.
- Increased Liquidity and Share Volume: The split multiplied the number of outstanding shares by tenfold, fostering greater liquidity in the market. Importantly, this change occurred without altering the company’s market capitalization or existing shareholding patterns.
- Positive Long-Term Outlook: This move is expected to bolster Nestle India’s long-term market performance. By improving stock liquidity and affordability, the company aims to attract a diverse mix of retail and institutional investors.
- Reflection of Confidence and Growth: The decision to split the stock aligns with Nestle India’s consistent record of strong financial performance and regular dividend payouts, indicating a robust growth trajectory and underlying confidence in its future prospects.
Nestle India share price target 2024
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2024 | 2,880.30 | 3,064.16 | 2,972.23 |
Nestle India share price target 2024: In 2024, Nestle India’s share price target is expected to have a range between a minimum of ₹2,880.30 and a maximum of ₹3,064.16, with an average target of ₹2,972.23.
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Competitors of Nestle Stock
Nestle India operates in a highly competitive and fragmented market, with several players offering similar or substitute products. Some of the major competitors of Nestle Stock are:
- Britannia Industries Ltd.: Britannia is the market leader in the biscuits segment in India, with brands such as Good Day, Tiger, Marie Gold, and NutriChoice. The company also offers dairy products, breads, cakes, and rusk. Britannia has a market capitalization of Rs. 1.06 lakh crore and a price-to-earnings ratio of 51.57 as of December 2023.
- Tata Consumer Products Ltd.: Tata Consumer is the second-largest player in the tea segment in India, with brands such as Tata Tea, Tetley, and Teabox. The company also offers coffee, water, salt, spices, pulses, and ready-to-cook products. Tata Consumer has a market capitalization of Rs. 1.34 lakh crore and a price-to-earnings ratio of 101.77 as of December 2023.
- Hindustan Unilever Ltd.: Hindustan Unilever is the largest FMCG company in India, with a presence in various categories such as personal care, home care, foods, and beverages. The company has a strong portfolio of brands, such as Dove, Lux, Surf Excel, Rin, Wheel, Lifebuoy, Clinic Plus, Sunsilk, Pond’s, Lakme, Brooke Bond, Kissan, Knorr, and Kwality Walls. Hindustan Unilever has a market capitalization of Rs. 5.07 lakh crore and a price-to-earnings ratio of 77.75 as of December 2023.
- Mondelez India Foods Pvt. Ltd.: Mondelez India is the market leader in the chocolate segment in India, with brands such as Cadbury Dairy Milk, 5 Star, Perk, Gems, Bournville, and Oreo. The company also offers biscuits, gums, and candies. Mondelez India is a subsidiary of the US-based Mondelez International Inc., which has a market capitalization of $84.5 billion and a price-to-earnings ratio of 23.37 as of December 2023.
Nestle India share price target 2025
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2025 | 3,600.38 | 3,830.20 | 3,715.29 |
Nestle India share price target 2025: For the year 2025, Nestle India share price target is projected to fall within the range of ₹3,600.38 (minimum) to ₹3,830.20 (maximum), with an average target of ₹3,715.29.
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Growth Opportunity for Nestle Stock
Nestle India presents a dynamic investment opportunity, leveraging emerging trends in the Indian market. This positions it favorably for sustainable growth and enhanced shareholder value. Let’s delve into the pivotal growth drivers:
1. Capitalizing on the Booming Packaged Food Market: Nestle India is perfectly poised to capitalize on the surging demand for packaged foods. With the Indian market projected to expand at a 12% CAGR, reaching $110 billion by 2028, key drivers such as increased disposable incomes, urbanization, lifestyle shifts, and heightened health and hygiene awareness play a crucial role. Nestle’s diverse product portfolio is well-equipped to meet these evolving consumer needs, promising greater market share and deeper penetration.
2. Diversifying into Emerging Sectors: The company’s strategic foray into novel sectors like plant-based products, immunity-boosting items, and pet care reflects its adaptability and innovative spirit. Launches like Nescafe Plantella and Nestle a+ Pro-Grow cater to contemporary consumer trends, strengthening its market position through unique offerings.
3. Strategic Partnerships with Startups: Nestle India’s collaboration with startups and entrepreneurs taps into innovative potentials and opens new market avenues. Partnerships with platforms like Zomato and Swiggy boost its online footprint, while investments in ventures like Agrima Infotech and Ninjacart offer insights into consumer behavior, allowing for tailored customer solutions.
4. Reputation Management and Recovery: Addressing past challenges head-on, Nestle India is committed to rebuilding trust and credibility. Post incidents like the 2015 Maggi noodles ban, the company has redoubled efforts in product quality, safety, and transparency. Engaging actively with media and stakeholders, Nestle India is reshaping its image, focusing on environmental and social responsibility.
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SWOT Analysis of Nestle Stock
Strengths:
- Market Leadership and Brand Equity: Nestle India’s status as the largest food company in India, in terms of market capitalization and revenue, is a significant strength. The company’s strong brand equity, loyal customer base, and competitive advantage, backed by the global leadership of Nestle S.A., position it strongly in the market.
- Diverse Product Portfolio: The company’s wide-ranging product offerings across various food and beverage categories, including popular brands like Nescafe, Maggi, and KitKat, ensure a broad market appeal and reduce reliance on any single product category.
- Global Brand Presence: Nestle India’s extensive global outreach, exporting to over 50 countries, benefits from the expansive network and resources of its parent company, Nestle S.A. This global footprint aids in market expansion and gaining international market insights.
- Focus on Environmental Sustainability: Nestle India’s commitment to environmental sustainability, demonstrated through initiatives to reduce carbon footprint and invest in renewable energy, enhances its corporate responsibility and aligns with regulatory norms.
Weaknesses:
- Complex Organizational Structure: The company’s intricate structure, encompassing various layers and divisions, can hinder effective coordination and rapid market response.
- Reliance on Raw Material Imports: Dependence on imported raw materials like milk powder and cocoa subjects the company to risks associated with currency fluctuations and supply chain disruptions.
- Limited Rural Market Penetration: With a presence in only a fraction of India’s villages, Nestle India has limited reach in rural areas, offering room for expansion.
Opportunities:
- Health and Wellness Trend: The growing awareness of health and wellness, especially post-Covid-19, presents an opportunity for Nestle India to leverage its expertise in nutrition and health, potentially introducing products catering to this trend.
- Premiumization Trend: The increasing consumer willingness to pay for superior quality offers a chance for Nestle to expand its premium product range.
- E-Commerce Growth: The rise of e-commerce and digital platforms in India opens new avenues for sales growth and customer engagement for Nestle India.
Threats:
- Competitive Market and Price Wars: The intense competition in the food and beverage sector in India, coupled with the risk of price wars, poses a threat to Nestle India’s market share and profitability.
- Regulatory Challenges: Stringent regulatory norms in India, along with past controversies, impact the company’s reputation and operational flexibility.
- Shifting Consumer Preferences: Keeping pace with rapidly changing consumer preferences remains a challenge, necessitating continuous innovation and adaptation of product offerings.
Nestle India share price target 2026
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2026 | 4,500.47 | 4,787.75 | 4,644.11 |
Nestle India share price target 2026: In 2026, Nestle India share price target is anticipated to span from a minimum of ₹4,500.47 to a maximum of ₹4,787.75, with an average target of ₹4,644.11.
Consider reading: 10 Stocks with Highest Share Price in India
Nestle Stock Company Financials
Nestle India showcases a resilient and robust financial performance, overcoming challenges such as the Covid-19 pandemic, inflation, and competitive market dynamics. This strength is underpinned by its diversified product range, strategic premium pricing, and extensive distribution network. Below is an insightful comparison of Nestle India’s financials for the nine months ending September 30, 2023, versus the same period in 2022:
Key Financial Highlights:
- Revenue Growth: The company witnessed a notable increase in revenue, climbing to Rs. 15,142 crore in 9M 2023 from Rs. 13,323 crore in 9M 2022, marking a 13.6% growth.
- Net Profit Surge: Net profit saw a significant jump of 35.9%, reaching Rs. 2,527 crore in 9M 2023, up from Rs. 1,860 crore in the previous year.
- Earnings Per Share (EPS) Increase: EPS rose impressively by 35.7%, from Rs. 192.67 in 9M 2022 to Rs. 261.52 in 9M 2023.
- Operating Margin Enhancement: The operating margin improved from 21.5% to 24.4%, showing an increase of 2.9%.
- Return on Equity (ROE) Boost: There was a substantial 12.1% rise in ROE, growing from 54.7% in 9M 2022 to 66.8% in 9M 2023.
Additionally, Nestle India declared a second interim dividend of Rs. 140 per share for 2023, a 40% increase from the first interim dividend of Rs. 100 per share. The company also announced a 1:10 stock split scheduled for January 2024, aimed at enhancing the stock’s affordability and accessibility for investors.
Nestle India share price target 2030
| Year | Minimum Share Price Target | Maximum Share Price Target | Average Share Price Target |
|---|---|---|---|
| 2030 | 10,987.47 | 11,688.84 | 11,338.16 |
Nestle India share price target 2030: In the year 2030, Nestle India share price target is projected to have a target range between ₹10,987.47 (minimum) and ₹11,688.84 (maximum), with an average target of ₹11,338.16.
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Key Things to Watch Out for Nestle Stock
Nestle India’s stock, a heavyweight in the Indian market with a market cap surpassing Rs. 2.5 lakh crore and a high price-to-earnings ratio of 86.43 as of December 2023, has shown impressive growth. The stock outperformed the Nifty 500 index in 2023 with a 54% return and underwent a 1:10 split in January 2024, enhancing investor accessibility. However, investors need to be vigilant about certain aspects that could influence its future trajectory:
1. Valuation Concerns: Despite its strong growth prospects, Nestle India’s stock trades at a premium valuation, significantly higher than the FMCG sector averages for both price-to-earnings and price-to-book value ratios. This elevated valuation sets high investor expectations, creating a narrow margin for error. Any failure to meet these expectations or adverse developments could exert downward pressure on the stock.
2. Competitive Landscape: The company operates in a fiercely competitive environment, contending with both domestic and international players offering comparable or superior products, often at more competitive prices. Challenges also arise from counterfeit products, potentially eroding brand trust. This intense competition could impact Nestle India’s market share, profitability, and innovation capabilities.
3. Regulatory Risks: Nestle India navigates a complex regulatory landscape, with stringent norms in quality, safety, labeling, and advertising within the food and beverage industry. Past controversies have impacted its reputation and financial performance. Moreover, evolving tax and trade policies pose additional challenges, affecting the company’s cost structure and profitability.
Final Thoughts on Nestle India share price target 2024, 2025, 2026, 2027, 2030
Nestle India, part of the global conglomerate Nestle S.A., is a leading name in the Indian food and beverage industry, showcasing a wide array of products spanning milk-based items, beverages, and chocolates. The company is renowned for its diverse brand portfolio, global presence, and dedication to innovation and sustainability.
Nestle India emerges as a heavyweight in the Indian stock market, boasting a market capitalization of over Rs. 2.5 lakh crore and a significant price-to-earnings ratio of 86.43. The stock’s performance in 2023 was noteworthy, with a 54% return that outperformed the Nifty 500 index’s 34% gain. The strategic 1:10 stock split in January 2024 further bolstered its appeal to a broader range of investors.
However, Nestle Stock faces challenges, including concerns over its valuation, stiff competition, regulatory changes, and shifts in consumer preferences. These elements could influence its future growth and market valuation.
Looking ahead, Nestle India’s growth trajectory seems promising, fueled by the rising demand for packaged foods, market expansion efforts, strategic partnerships, and a focus on maintaining its stellar reputation.
FAQs on Nestle India share price target 2024, 2025, 2026, 2027, 2030
What is Nestle India share price target 2024?
In 2024, the share price target for Nestle India is projected to vary from a minimum of ₹2,880.30 to a maximum of ₹3,064.16, with an average target of ₹2,972.23.
What is Nestle India share price target 2025?
In 2025, Nestle India share price target is anticipated to range from a minimum of ₹3,600.38 to a maximum of ₹3,830.20, with an average target of ₹3,715.29.
What is Nestle India share price target 2026?
For the year 2026, Nestle India share price target is expected to encompass a range from a minimum of ₹4,500.47 to a maximum of ₹4,787.75, with an average target of ₹4,644.11.
What is Nestle India share price target 2030?
In 2030, Nestle India share price target is forecasted to fall within a target range of ₹10,987.47 (minimum) to ₹11,688.84 (maximum), with an average target of ₹11,338.16.
