Industry profile: Personal Care and consumer staples are the sectors that hardly get affected by any crisis. Because you can stop using tooth pests, Soap, the life span of the products is also high. Shelf life is also small. Investors see these companies as a secure place in crisis as maybe consumers may change habits about other things, but it isn’t easy. This is the perfect sector for investors seeking steady growth, dividend, and low volatility. As 70% of Gross National Product is consumer spending, and the consumer staples sector is an essential part of it, we can’t ignore it. Plus, this sector is hardly cyclical. Even if your income is changed negatively, you can stop using soap. Demand for soap, tobacco, tooth pest and Dish wash will not change drastically, which is a double-edged sword for the sector. You can not see growth like Financials or automobile companies, but you can hardly see them telling you that our revenue is also down.
Their profit per item is also tiny, but that factor is covered when the volume is high. So for this sector, Same-Store Sales growth and volume growth are more critical than Margin.
Company profile: Nestlé India, the Indian subsidiary of Swiss Nestlé S.A., is a food and drink company. The parent company has been the largest food company in the world, measured by revenues and other metrics, since 2014. The Company has been doing business in India since 1912 and has an extensive product portfolio such as NESCAFÉ, MAGGI, MILKY BAR, KIT KAT, BAR-ONE, MILKMAID, and NESTEA. Nestlé’s products include baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks.
Shareholding pattern:
Financials and ratio : [table id=94 /]
Future prospectus. : Even in a worst-case scenario, The fundamentals look good. There is competition with Patanjali, but the fundamentals are still strong. Maggi gained the market share lost to Patanjali and Yipee nudels. The Company sells many products, so the company cant is ignored for investment grade.