INSTITUTE OF BUSINESS MANAGEMENT AND

RESEARCH

A PROJET REPORT ON

FINANCIAL AND FUNDAMENTAL ANALYSIS

OF
NESTLE INDIA LTD.

SUBMITTED BY: SUBMITTED TO:

SIDDARUDH M ITNAL PROF.JAYARAJ SIR
I MBA, IBMR B-SCHOOL,HUBLI IBMR B-SCHOOL,HUBLI
2023-25
INTRODUCTION:
Nestlé, a global powerhouse in the food and beverage industry, has left an indelible
mark on the world since its inception in 1866. With a legacy spanning over 150 years,
Nestlé has evolved from a small Swiss milk company to the largest food and beverage
company in the world by revenue. Guided by its purpose of enhancing quality of life
and contributing to a healthier future, Nestlé operates in virtually every corner of the
globe, touching the lives of billions of people with its diverse portfolio of products.

At the heart of Nestlé's success lies its relentless commitment to innovation and
quality. From pioneering the development of infant formula to revolutionizing the
instant coffee market with Nescafé, Nestlé has continually pushed the boundaries of
what is possible in the food and beverage industry. Through extensive research and
development, coupled with strategic acquisitions and partnerships, Nestlé has built a
portfolio of iconic brands that resonate with consumers across cultures and
demographics.

Nestlé's presence extends beyond just food and beverages; it also encompasses
nutrition, health, and wellness. With a deep understanding of the evolving needs and
preferences of consumers, Nestlé has been at the forefront of developing products
that promote health and wellness, while also meeting the highest standards of taste
and quality. Whether it's offering fortified breakfast cereals to support children's
growth and development or introducing plant-based alternatives to meet the
demands of flexitarian consumers, Nestlé remains committed to nourishing people's
lives in a sustainable and responsible manner.

Moreover, Nestlé's dedication to sustainability is ingrained in its business practices.

As a signatory to the United Nations Global Compact, Nestlé is committed to upholding
principles related to human rights, labor, environment, and anti-corruption. The
company's Creating Shared Value approach seeks to address societal challenges
while simultaneously creating value for shareholders, ensuring that its business
operations have a positive impact on the communities and environments in which it
operates.

In recent years, Nestlé has also embraced digitalization and technology to enhance
its operations and engage with consumers more effectively. From leveraging data
analytics to gain insights into consumer preferences to adopting advanced
manufacturing techniques to optimize production processes, Nestlé continues to
innovate and adapt to the ever-changing business landscape.

As Nestlé looks to the future, its unwavere, commitment to its founding principles,
combined with its spirit of innovation and adaptability, positions it strongly to navigate
the challenges and opportunities that lie ahead. With a legacy built on trust, quality
and sustainability, Nestlé remains dedicated to enhancing the lives of people around
the world through its products, initiatives, and actions.

PROFIT AND LOSS ACCOUNT

Nestle India
Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------

Dec 22 Dec 21 Dec 20 Dec 19 Dec 18

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

Revenue From Operations [Gross] 16,789.53 14,633.72 13,290.16 12,295.27 11,216.23

12,295.27
Revenue From Operations [Net] 16,789.53 14,633.72 13,290.16 11,216.23
73.63

Other Operating Revenues 107.43 75.69 59.87 12,368.90 76.04

246.88
Total Operating Revenues 16,896.96 14,709.41 13,350.03 11,292.27

Other Income 101.00 120.11 145.85 258.92

Total Revenue 16,997.96 14,829.52 13,495.88 12,615.78 11,551.19

EXPENSES

Cost Of Materials Consumed 7,652.11 6,154.10 5,554.24 5,150.30 4,365.68

Purchase Of Stock-In Trade 348.02 227.52 189.00 217.81 230.56

Changes In Inventories Of FG,WIP An d -144.19

Stock-In Trade -250.27 -62.70 -69.33 -6.01
1,258.17
Employee Benefit Expenses 1,635.46 1,521.30 1,500.95 129.12 1,124.15
Finance Costs
24.88
154.57 201.19 164.18 111.95

Provsions and Contingencies 45.72 -23.95 13.97 370.15 103.68

Depreciation And Amortisation Expenses 403.01 390.19 370.38 335.67

 VALUE OF IMPORTED AND INDIGENIOUS RAW
MATERIALS

STORES, SPARES AND LOOSE TOOLS

DIVIDEND AND DIVIDEND PERCENTAGE

2,950.32
Equity Share Dividend 2,024.73 1,928.31 1,889.75 605.94 1,089.50
3,420.00
Tax On Dividend 0.00 0.00 0.00 223.87

Equity Dividend Rate (%) 2,200.00 2,000.00 2,000.00 1,150.00

BALANCE SHEET
\Nestle India
Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Dec 22 Dec 21 Dec 20 Dec 19 Dec 18

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 96.42 96.42 96.42 96.42

96.42
Total Share Capital 96.42 96.42 96.42 96.42 96.42

Reserves and Surplus 2,362.75 1,988.06 1,922.92 1,822.45 3,577.32

Total Reserves and Surplus 2,362.75 1,988.06 1,922.92 1,822.45 3,577.32

Total Shareholders Funds 2,459.17 2,084.48 2,019.34 1,918.87 3,673.74

NON-CURRENT LIABILITIES

Long Term Borrowings 26.66 27.47 31.72 35.14

Deferred Tax Liabilities [Net] 0.00 0.00 0.00 53.14 58.82

13.44
Other Long Term Liabilities 208.00 210.20 87.85 0.51
90.03

Long Term Provisions 3,205.16 3,284.54 3,268.27 2,906.91 2,464.92

Total Non-Current Liabilities 3,439.82 3,522.21 3,387.84 3,063.52 2,559.39

CURRENT LIABILITIES

Short Term Borrowings 3.37 6.59 3.12 0.00

0.00

Trade Payables 2,120.94 1,889.66 1,809.01 1,240.37

Other Current Liabilities 794.74 568.45 574.46 1,626.58 457.32

478.51
Short Term Provisions 160.70 138.54 105.96 157.26
85.46
Total Current Liabilities 3,079.75 2,603.24 2,492.55 2,190.55 1,854.95

Total Capital And Liabilities 8,978.74 8,209.93 7,899.73 7,172.94 8,088.08

ASSETS

NON-CURRENT ASSETS

Tangible Assets 3,043.70 2,993.97 2,179.41 2,400.62

2,341.45
Capital Work-In-Progress 358.36 246.23 638.58 105.20
143.30
Fixed Assets 3,402.06 3,240.20 2,817.99 2,484.75 2,505.82

Non-Current Investments 560.19 710.70 740.83 743.60 733.36

Deferred Tax Assets [Net] 25.61 25.84 19.92 0.00 0.00

46.98
Long Term Loans And Advances 9.00 49.09 46.55 40.14

80.44
Other Non-Current Assets 1,491.73 1,445.34 89.36 71.81

Total Non-Current Assets 5,488.59 5,471.17 3,714.65 3,355.77 3,351.13

CURRENT ASSETS

Current Investments 217.35 63.28 722.94 1,925.13

1,007.45

1,928.77 1,580.22 1,416.48 965.55

Inventories

Trade Receivables 191.89 164.93 1,283.07 124.59

165.27
Cash And Cash Equivalents 735.41 1,769.87 124.33 1,610.06
945.55

Short Term Loans And Advances 10.26 11.85 13.22 1,308.05 17.89
12.46
OtherCurrentAssets 196.33 182.73 97.64 93.73
81.81
Total Current Assets 3,490.15 2,738.76 4,185.08 3,817.17 4,736.95

Total Assets 8,978.74 8,209.93 7,899.73 7,172.94 8,088.08

OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS

394.48
Contingent Liabilities 790.18 187.26 315.40 47.91

CIF VALUE OF IMPORTS

EXPENDITURE IN FOREIGN EXCHANGE
2,942.95

Expenditure In Foreign Currency 2,760.08 2,460.04 2,791.46 1,717.13

REMITTANCES IN FOREIGN CURRENCIES -

FOR DIVIDENDS

Dividend Remittance In Foreign - - - 638.48 -

Currency -
EARNINGS IN FOREIGN EXCHANGE
73.41
FOB Value Of Goods 691.93 639.57 647.39 708.69

Other Earnings - - - -
765.58
BONUS DETAILS
-
Bonus Equity Share Capital 73.41 73.41 73.41 73.41

NON-CURRENT INVESTMENTS
Non-Current Investments Quoted 1,007.39
Market Value 591.86 779.75 805.47 727.81

Non-Current Investments Unquoted -

Book Value - - 18.88 -

CURRENT INVESTMENTS

Current Investments Quoted Market

Value 220.40 63.39 722.94 1,925.13
Current Investments Unquoted Book
Value
- - - -

Nestle fundamental analysis

1) Company Overview: Nestlé is a multinational food and beverage company
headquartered in Switzerland. It is one of the largest food companies in
the world, with a wide range of products including baby food, bottled
water, dairy products, breakfast cereals, confectionery, coffee, and more.
2) Financial Performance: Analyzing Nestlé's financial statements can give
insights into its revenue, profitability, and financial health over time. Key
metrics to consider include revenue growth, net income, profit margins,
and cash flow from operations.
3) Market Position: Nestlé's market position is strong due to its diverse
product portfolio, global presence, and strong brand recognition.
Assessing its market share in various product categories and regions can
provide insights into its competitive position.

4) Industry Trends: Understanding trends in the food and beverage industry,

such as shifting consumer preferences, health and wellness trends, and
regulatory changes, can help evaluate Nestlé's growth prospects and
potential challenges.

5) Risks: Identifying potential risks to Nestlé's business, such as supply

chain disruptions, commodity price fluctuations, regulatory risks, and
competition, is crucial for assessing its long-term sustainability and
resilience.
 6) Corporate Governance: Examining Nestlé's corporate governance
practices, including board structure, executive compensation, and
shareholder rights, can provide insights into how the company is
managed and whether it prioritizes shareholder interests.

7) Valuation: Lastly, assessing Nestlé's valuation relative to its peers and

historical averages can help determine whether its stock is currently
undervalued, fairly valued, or overvalued. Common valuation metrics
include price-to-earnings ratio, price-to-sales ratio, and dividend yield.

8) Overall, conducting a thorough fundamental analysis of Nestlé involves

evaluating its financial performance, market position, industry trends,
risks, corporate governance, and valuation to make informed investment
decisions.

It seems like you're asking about the current stock rating for Nestle. As of my
last update, I don't have real-time data on stock ratings. It's best to consult a
financial advisor or a reliable financial news source for the most up-to-date
information on whether to buy, sell, or hold Nestle stock.