Nestlé India Limited (NESTLEIND.NS) stock analysis

In our weekly check, Nestlé India Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 1, red flags: 3.

About Nestlé India Limited

Nestlé India Limited is a Consumer Defensive company (Packaged Foods) based in India, listed on NSE as NESTLEIND.NS.

What our checks show for NESTLEIND.NS

Red flags

• Operating profit does not cover the interest bill (0.3x): interest is paid from cash or new debt.
• The gross margin fell by 12.8 points, to 43%: costs are rising faster than prices.
• The dividend takes 6278% of profit: little cushion if profit falls.

Warning signs

• Recovering from its deepest fall took about 1.6 years.

Strengths

• Debt is low: 0.08x equity.
• Operating cash flow is 1.45x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 15.3% a year over the next years.
• Earnings per share grew 13.5% a year over the last 3 years.
• Net profit grew 13.5% a year over the last 3 years.
• Free cash flow is 18.3% of revenue: cash for dividends, buybacks or growth.

Similar companies

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Questions

What grade does Nestlé India Limited (NESTLEIND.NS) have?

In our weekly check, Nestlé India Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 1, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of NESTLEIND.NS stock?

This week's biggest flags for Nestlé India Limited: Weak interest cover, Gross margin falling, Dividend stretched. In total 4 of 25 checks show a warning or a red flag.

What does Nestlé India Limited do?

Nestlé India Limited is a Consumer Defensive company (Packaged Foods) based in India, listed on NSE as NESTLEIND.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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