Why is Nestle India falling/rising?

Aug 14 2025 09:00 PM IST
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As of 14-Aug, Nestle India Ltd's stock price is 1,089.35, down 0.72%, and trading below its moving averages, indicating a bearish trend. The stock has underperformed the Sensex and is close to its 52-week low, with poor long-term growth prospects and high valuation concerns.
As of 14-Aug, Nestle India Ltd's stock price is currently at 1,089.35, reflecting a decrease of 7.95 points or 0.72%. The stock has been trading below its moving averages across various time frames, indicating a bearish trend. Over the past week, the stock has declined by 2.55%, and it has underperformed the benchmark Sensex, which only saw a minor decline of 0.03%. Additionally, the stock is close to its 52-week low, being just 2.92% away from it. The recent performance has been characterized by falling investor participation, with a delivery volume decrease of 2.31% compared to the 5-day average. Despite high management efficiency and a strong ability to service debt, the company's long-term growth prospects appear poor, as evidenced by a low operating profit growth rate and negative quarterly results.

In the broader market context, Nestle India's performance has lagged behind the Sensex, particularly over the past year, where it has generated a return of -11.97% compared to the Sensex's positive return of 1.89%. This underperformance is compounded by the company's high valuation relative to its peers, which may deter investors. The stock's recent struggles are further highlighted by its inability to generate positive returns in both the short and long term, leading to a perception of weakness in its financial health and growth potential.
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