Nestle India Ltd

CMP: 4200

Nestle India Ltd. manufactures brand name milk products and other food products. The Company's products include Everyday dairy whitener, milk powder and ghee, Milkmaid sweetened condensed milk and Cerelac weaning foods. Nestle's beverages include Nescafe and Sunrise coffee and Nesfit enriched glucose powder. Nestle also manufactures Maggi noodles, soups and sauces.

Nestle is a strong brand valued large-cap and will continue to race through the top large-cap stocks. Its currently trading at a P/E of 43 with good dividend yields over 1% in the last 12 months. Minimal liability and good Cash & Cash equivalents makes it a safe buy as well. Revenues have grown from 2800 Crores to well over 6200 Crores in the last 5 years. Profits have risen from 315 Crores to 818 Crores backed by NPM growth. NPM has risen smartly from 11% to 13% over 5 years. Buy, accumulate on dips and hold for long term gains.