Nestle India Preview: Steady Performance Likely, SEBI RA Rohit Mehta Spots Bullish Chart Formation

Analysts expect revenue to rise by 6% but profit to remain flat, according to reports

FMCG bigwig Nestle India is set to announce its quarterly results on Thursday, with analysts expecting a modest performance.

According to reports, Nestle India is expected to post a 6% rise in revenue to ₹5,082 crore compared to ₹4,793 crore reported last year. The net profit for the period is likely to increase slightly to ₹751 crore from ₹747 crore.

From a technical standpoint, the stock is forming a cup-and-handle pattern after bouncing from its key support zone of ₹2,046–₹2,106, indicating a bullish continuation setup. If the formation sustains, a breakout above ₹2,748 could trigger a sharp upward move, said SEBI-registered analyst Rohit Mehta.

Nestle India stock is currently around 11% off its all-time high of ₹2,748.8.

The June-quarter results are likely to be similar to the previous quarter. The March quarter showed mixed trends: Sales rose 4.5% but EPS fell 5.3% and profit before taxes declined 3.7%, indicating margin pressure.

The company’s long-term fundamentals remain intact, however. Nestle, which sells Maggi noodles,  boasts a stellar average 3-year ROE of 107% and maintains an 82.1% dividend payout ratio. On the other hand, valuation remains a concern, as the stock trades at 57.2 times book value, while revenue growth is expected to be 10.3% CAGR over the next five years.

From a shareholder perspective, the June quarter saw foreign investors (FIIs) increase their stake to 10.28%, while domestic investors (DIIs) trimmed their holdings slightly to 11.18%. Promoter holding remained unchanged at 62.76%.

If Q1 results beat estimates, a technical breakout cannot be ruled out, the analyst said.

The shares closed 0.2% higher at ₹2,450 on Wednesday. Its YTD gains are at 12.9%.

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