One of the biggest and most prosperous businesses in the world is Nestle, a multinational food and beverage corporation based in Switzerland. With a more than 150-year history, Nestle has established itself as a household name and is recognised for its many well-known brands, such as KitKat, Nescafe, and Maggi. Throughout the years, the business has continuously produced remarkable financial results, and it has a proven track record of creating steady revenue growth and profitability.
It makes sense for a stock market enthusiast or investor to desire to know what the share price of Nestle will do in the future. In this article, we will examine Nestle’s stock performance in more detail and examine important variables that could affect the company’s share price in the future.
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NESTLE IN RECENT NEWS
- The Q4 results caused a 4% drop in Nestle’s share value.
- Nestlé India has revealed its intention to make a significant investment of Rs 4,200 crore by the year 2025.
- Suresh Narayanan, who serves as both the Chairman and Managing Director of Nestlé India, has highlighted the continuous increase in brand recognition for Nestlé in India, pointing to a consistent and broad-based growth trend.
- Suresh Narayanan, the head of Nestlé India, mentions that they introduced ten new products during the first half of 2023.
- The nutritional data from Nestlé highlights the difficulties arising from the varied health rating systems across the Asia-Pacific (APAC) region.
NESTLE SHARE PRICE TARGET 2023
|NESTLE SHARE PRICE TARGET 2023||Maximum Price||Minimum Price|
The overall trend for the company’s share price appears to be bullish, with a strong uptrend predicted throughout the year. The maximum price for NESTLE shares is expected to reach ₹148.45 in December 2023, which represents a significant growth percentage from the minimum price of ₹109.78 in September 2023.
In October 2023, NESTLE’s shares are expected to reach a maximum price of ₹119.83, which is a 30.2% increase from the minimum price of ₹84.86. The following month, the maximum price is predicted to be ₹128.56.
NESTLE SHARE PRICE TARGET 2024
|NESTLE SHARE PRICE TARGET 2024||Maximum Price||Minimum Price|
The predicted NESTLE share price target for 2024 continues to show a strong uptrend with a significant growth percentage. The maximum price for the company’s shares is expected to reach ₹264.12 in December 2024, representing a substantial growth percentage from the minimum price of ₹136.87 in May 2024.
The trend for NESTLE shares in 2024 starts with an expected maximum price of ₹198.58 in January, which is a significant growth of 91.1% from the minimum price of ₹103.7 in the same month. The trend continues with a predicted maximum price of ₹223.13 in February 2024, a growth of 19.7% from the minimum price of ₹185.94. In March, the expected maximum price is ₹234.87, a growth of 23.1% from the minimum price of ₹190.95.
The growth percentage remains consistent with a predicted maximum price of ₹246.61 in October 2024, which is a 30.1% increase from the minimum price of ₹189.70. In November, the maximum price is predicted to be ₹258.94, a growth of 26.9% from the minimum price of ₹199.19. Finally, in December 2024, the expected maximum price is ₹264.12, which represents a growth of 29.3% from the minimum price of ₹203.17.
NESTLE SHARE PRICE TARGET 2025
|NESTLE SHARE PRICE TARGET 2025||Maximum Price||Minimum Price|
The year 2025 seems to be another year of bullish trend for NESTLE. The maximum share price target for January 2025 is predicted to be ₹269.41, which is expected to increase to ₹320.39 by the end of December 2025. The minimum share price target is predicted to be ₹207.24 in January 2025, with a slight dip to ₹185.92 in May 2025. However, the share price is expected to recover and end the year with an uptrend, with a minimum price of ₹246.45 in December 2025. Overall, the year 2025 is predicted to be a good year for NESTLE shareholders, with a significant growth percentage expected.
NESTLE SHARE PRICE TARGET 2026 TO 2030
|NESTLE SHARE PRICE TARGET BY||Maximum Price||Minimum Price|
The data predicts a significant growth in NESTLE’s share price over the next five years. In 2026, the maximum share price target is predicted to be ₹224.27, with a minimum price of ₹156.99. The share price is expected to follow a similar trend in 2027, with a maximum target of ₹190.63 and a minimum target of ₹133.44.
However, the share price is predicted to experience a significant surge in 2028, with a maximum target of ₹343.13 and a minimum target of ₹240.19. The upward trend is expected to continue in 2029, with a maximum price target of ₹704.85 and a minimum target of ₹493.39. The year 2030 is predicted to be another year of growth, with a maximum share price target of ₹784.94 and a minimum price of ₹549.46.
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FINANCIAL STRENGTH OF NESTLE (2018 TO 2022)
|ANNUAL||FY 2022||FY 2021||FY 2020||FY 2019||FY 2018|
|Total Revenue Growth (%)||14.41||9.88||6.98||9.22||13.40|
|Total Expenses Growth (%)||16.95||9.61||7.45||8.99||9.28|
|Profit after Tax (PAT)||2,406.45||2,144.86||2,082.43||1,968.44||1,606.93|
|PAT Growth (%)||12.20||3.00||5.79||22.50||31.16|
|Operating Profit Margin (%)||20.31||22.58||22.29||22.65||22.50|
|Net Profit Margin (%)||14.26||14.58||15.59||15.91||14.23|
|Basic EPS (₹)||249.58||222.46||215.98||204.28||166.67|
Looking at Nestle’s financial bank statement of the past five years, the company has shown consistent growth in terms of revenue and profit. In FY 2022, the company’s total revenue reached ₹16,966.06 crores, reflecting a growth of 14.41% from the previous year. The profit after tax (PAT) also increased by 12.20% in FY 2022, reaching ₹2,406.45 crores. However, the total expenses grew at a higher rate of 16.95%, reaching ₹13,694.16 crores in FY 2022.
Nestle has maintained a stable operating profit margin of around 22% over the past five years, indicating efficient management of costs. The net profit margin has fluctuated slightly, but has remained above 14%. Basic earnings per share (EPS) have also consistently increased over the years, with the FY 2022 EPS being ₹249.58.
Overall, Nestle’s financial bank statement suggests that the company has been able to achieve sustainable growth in revenue and profit over the years, despite facing challenges such as increased expenses. The percentage growth in both revenue and profit has been positive, indicating the company’s ability to adapt and perform in changing market conditions.
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POINTS TO KEEP IN NOTE WHILE INVESTING IN NESTLE SHARES:
- The company boasts an impressive track record of Return on Equity (ROE) with a 3-year average of 110%.
- Maintaining a robust dividend payout ratio, the company consistently offers a healthy payout of 90.8%.
- The stock is currently trading at a significant premium of 73.7 times its book value.
- However, the company has experienced lackluster sales growth, posting only an 11.0% increase over the past five years.
EXPERTS VIEW ON NESTLE SHARE PRICE TARGET:
- KR Choksey recommends considering the accumulation of Nestle India shares and sets a target price of Rs 24,300 (August 8, 2023).
- ICICI Securities advises holding Nestle India shares with a projected price of Rs. 23,000.(25 April 2023)
- Sharekhan expresses optimism about Nestle India, suggesting investors buy the stock with a target price of Rs 22,590.( February 17,2023)
- Motilal Oswal provides a “Neutral” rating for Nestlé India and sets a target price of Rs 20,500(25 April 2023).
- Axis Securities recommends purchasing Nestle India shares with a target price of Rs. 21,700(10 April 2023).
The maximum share price target of Nestle in 2026 is Rs. 224.27
The maximum share price target of Nestle in 2027 is Rs. 190.63
The maximum share price target of Nestle in 2028 is Rs. 343.13
The maximum share price target of Nestle in 2029 is Rs. 704.85
The maximum share price target of Nestle in 2030 is Rs. 784.94
Based on the financial statement of the last five years, it appears that NESTLE has been consistently growing its revenue and profit. The company has achieved a significant revenue growth rate ranging from 6.98% to 14.41% and a PAT growth rate ranging from 3.00% to 31.16% over the past five years. The operating profit margin has remained steady and above 20% for all five years, indicating that the company is efficient in generating profits from its operations. The basic EPS has also shown consistent growth over the years.
However, it is important to note that the company has also experienced increasing total expenses in line with its revenue growth, which could potentially limit future profitability. Additionally, the stock market is subject to fluctuations and uncertainties, and past performance is not a guarantee of future returns.
In conclusion, while the past performance of NESTLE has been impressive, investors should conduct thorough research and analysis before making any investment decisions. It is recommended to consult with a financial advisor and consider various factors such as market conditions, competition, and company strategy before deciding whether to invest in NESTLE or any other stock.
Suhani Bhat, a student of Hansraj college, is a finance writer who takes deep interest in stock market, mutual funds, and other financial news. She writes for multiple finance blogs, including Financegradeup.com. Other than English, she also speaks Hindi.