Nestle is an MNC present / operating across geographies. And it became even more popular due to Maggi issue in India. While many assume Nestle to be a Maggi noodles company, it is present across products. Let's understand NESTL'E.
- Nestle India is a 32 year old company.
- Makes Nutrition, Health and Welness producs
- Key business segments :
- Prepared food
- Cooking aids
- Chocolates and confectionery
- Milk Products
- Cofee and beverages
- Flagship brands:
- Maggi,
- Everyday (milk powder)
- Munch
- Polo
- Sunrise (Cofee)
- Nestea (Tea)
- Baby and Me
- Lactogen
- Debt free company - Has Rs.445 Cr Bank balance + Rs.812 Cr Investments - as on Dec 2014
- Nestle was on a dream run for the past 10 years, rallying from Rs.700 to Rs.7299 on 13th March 2015.
- Post Maggi's complications in the beginning of June 2015, the stock fell down to a low of Rs. 5501 on 8th March 2015.
- Since Maggi accounts for 20% of overall revenue and it had to be pulled off completely post the issue, Nestle reported its first quarterly loss in 17 years!
- Since then, Maggi came out with clear results and has relaunched it across india.
Given its wide product range and near monopoly in certain segments, Nestle is bound to do well going forward. The worst may be behind us. It is high time Investors take a serious looks at this stock which can grow steadily. Quoting at Rs.5800+, it is quiet close to its 1 year low of Rs.5501. That's a 20% discount from its peak.
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