InCred Equities - Nestle India Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	243,939	201,095	220,965	243,286
Operating EBITDA (Rsm)	58,198	47,590	54,332	60,616
Net Profit (Rsm)	39,285	32,405	37,363	41,611
Core EPS (Rs)	40.7	33.6	38.7	43.2
Core EPS Growth	64.3%	(17.5%)	15.3%	11.4%
FD Core P/E (x)	54.34	65.88	57.14	51.31
DPS (Rs)	31.2	28.5	32.8	36.6
Dividend Yield	1.41%	1.29%	1.48%	1.65%
EV/EBITDA (x)	36.60	44.88	39.27	35.17
P/FCFE (x)	75.52	96.13	63.15	57.77
Net Gearing	(14.2%)	1.9%	(3.0%)	(5.8%)
P/BV (x)	63.90	55.64	48.43	42.32
ROE	135.5%	90.3%	90.6%	88.0%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	243,939	201,095	220,965	243,286
Gross Profit	136,853	113,820	125,729	138,673
Operating EBITDA	58,198	47,590	54,332	60,616
Depreciation And Amortisation	(5,378)	(5,997)	(6,407)	(6,971)
Operating EBIT	52,820	41,593	47,925	53,644
Financial Income/(Expense)	25	1,729	2,025	1,985
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)
Profit Before Tax (pre-EI)	52,845	43,322	49,950	55,630
Exceptional Items
Pre-tax Profit	52,845	43,322	49,950	55,630
Taxation	(13,560)	(10,917)	(12,587)	(14,019)
Exceptional Income - post-tax
Profit After Tax	39,285	32,405	37,363	41,611
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	39,285	32,405	37,363	41,611
Recurring Net Profit	39,285	32,405	37,363	41,611
Fully Diluted Recurring Net Profit	39,285	32,405	37,363	41,611

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	58,198	47,590	54,332	60,616
Cash Flow from Invt. & Assoc.
Change In Working Capital	3,107	(6,115)	44	1,352
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	1,480	2,095	2,455	2,520
Net Interest (Paid)/Received	(1,455)	(366)	(429)	(535)
Tax Paid	(13,560)	(10,917)	(12,587)	(14,019)
Cashflow From Operations	47,769	32,286	43,813	49,934
Capex	(23,377)	(6,798)	(6,126)	(9,077)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments	3,137	(3,500)	(4,000)	(4,000)
Other Investing Cashflow
Cash Flow From Investing	(20,240)	(10,298)	(10,126)	(13,077)
Debt Raised/(repaid)	740	219	120	100
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(30,082)	(27,446)	(31,645)	(35,244)
Preferred Dividends
Other Financing Cashflow	0	0	0	0
Cash Flow From Financing	(29,342)	(27,227)	(31,525)	(35,144)
Total Cash Generated	(1,812)	(5,239)	2,162	1,713
Free Cashflow To Equity	28,269	22,207	33,808	36,957
Free Cashflow To Firm	28,984	22,354	34,117	37,392

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	8,188	2,950	5,112	6,825
Total Debtors	3,005	2,479	2,422	2,999
Inventories	20,894	15,426	13,318	17,996
Total Other Current Assets	16,886	17,232	17,341	17,463
Total Current Assets	48,972	38,088	38,193	45,285
Fixed Assets	52,020	52,820	52,539	54,645
Total Investments	4,239	7,739	11,739	15,739
Intangible Assets
Total Other Non-Current Assets
Total Non-current Assets	56,259	60,559	64,278	70,383
Short-term Debt	631	631	631	631
Current Portion of Long-Term Debt
Total Creditors	22,379
Other Current Liabilities	36,313	25,234	22,826	25,023
Total Current Liabilities	59,323	25,865	23,458	25,655
Total Long-term Debt	2,814	3,033	3,153	3,253
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities	2,814	3,033	3,153	3,253
Total Provisions	32,063	31,381	31,775	36,308
Total Liabilities	94,201	60,279	58,386	65,216
Shareholders Equity	33,409	38,367	44,085	50,452
Minority Interests
Total Equity	33,409	38,367	44,085	50,452

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	44.4%	(17.6%)	9.9%	10.1%
Operating EBITDA Growth	56.8%	(18.2%)	14.2%	11.6%
Operating EBITDA Margin	23.9%	23.7%	24.6%	24.9%
Net Cash Per Share (Rs)	4.92	(0.74)	1.38	3.05
BVPS (Rs)	34.65	39.79	45.72	52.33
Gross Interest Cover	36.31	113.69	111.67	100.32
Effective Tax Rate	25.7%	25.2%	25.2%	25.2%
Net Dividend Payout Ratio	76.6%	84.7%	84.7%	84.7%
Accounts Receivables Days	3.68	4.98	4.05	4.07
Inventory Days	68.48	75.95	55.08	54.63
Accounts Payables Days	71.10	46.80
ROIC (%)	154.8%	66.3%	76.3%	78.8%
ROCE (%)	167.6%	120.6%	122.1%	127.8%
Return On Average Assets	40.3%	30.1%	35.1%	36.3%

(91) 22 4161 1561 rohan.kalle@incredresearch.com

(91) 22 4161 1564 nishant.bagrecha@incredresearch.com

(91) 2241611558 saurabh.singh@incredresearch.com

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Market Data

Source: Bloomberg