Why is Nestle India falling/rising?

Aug 01 2025 08:44 PM IST
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As of 01-Aug, Nestle India Ltd's stock price is 2,275.95, up 1.18% recently but down 5.57% over the past month and 8.60% over the last year. While it has shown short-term gains and outperformed the Sensex recently, long-term growth remains weak, indicating cautious investor sentiment.
As of 01-Aug, Nestle India Ltd's stock price is currently at 2,275.95, reflecting an increase of 26.5, or 1.18%. The stock has been gaining for the last three days, with a total return of 2.11% during this period, and it has outperformed its sector by 0.48% today. However, despite this recent uptick, the stock has shown a decline of 5.57% over the past month and a significant drop of 8.60% over the last year. Factors contributing to the stock's recent movement include high management efficiency indicated by a strong ROCE of 162.49% and a low Debt to EBITDA ratio of 0.16, suggesting a solid ability to service debt. Nevertheless, the stock faces challenges such as poor long-term growth, with operating profit growth at only 9.66% over the last five years, and negative results reported in June, including a 15.8% decline in PAT compared to the previous four-quarter average.

In the broader market context, Nestle India's short-term performance has been relatively better than the benchmark, as it has outperformed the Sensex by 1.06% over the past week. However, the stock's longer-term performance has been below par, with returns of -8.60% over the past year compared to a -1.55% decline in the Sensex. This underperformance in the long term, coupled with falling investor participation and a significant drop in delivery volume, indicates a cautious sentiment among investors. Despite the stock's recent gains, the overall trend suggests that it is struggling to maintain momentum in a challenging market environment.
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