BRITANNIA vs NESTLEIND
Side-by-side comparison of Britannia Industries Ltd. and Nestle India Ltd.. Descriptive only — not investment advice.
Britannia Industries Ltd.
FMCG
Quality Score: 54/100
Nestle India Ltd.
FMCG
Quality Score: 68/100
At a glance
| Metric | BRITANNIA | NESTLEIND |
|---|---|---|
| Quality Score | 54/100 | 68/100 |
| P/E (trailing) | 49.1 | 78.3 |
| Forward P/E | 39.7 | 59.7 |
| ROE | +53.3% | +76.3% |
| Profit margin | +13.2% | +15.1% |
| Debt-to-equity | 26.88 | 8.62 |
| Dividend yield | +1.74% | +0.85% |
| 1Y price return | -4.9% | +20.9% |
| From 52w high | -18.6% | -5.6% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | — | 2.42 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Britannia Industries (FMCG) trades at 5157.5, down 4.94% over 12 months and 16.25% over 3 months, sitting below both its 50-DMA (5555.48) and 200-DMA (5829.09) with RSI at 27.97. Q4 FY26 reported net profit of Rs 678 crore, up 21% YoY, with a record dividend of Rs 90.5/share declared. The trailing PE of 49.06 and D/E of 26.875 are the two most structurally notable metrics relative to FMCG sector norms.
Nestle India trades at ₹1,414.80, up 20.95% over 12 months and 19.26% over the past 3 months, sitting 5.56% below its 52-week high and above both the 50-DMA (₹1,406.30) and 200-DMA (₹1,285.41). The company reports a trailing ROE of 76.34% — highest among 6 tracked FMCG peers — alongside a 5-year revenue CAGR of 23% and earnings CAGR of 27.4%, but carries a D/E of 8.621 with a rising debt trend that diverges from the asset-light FMCG profile. Trailing PE of 78.27 is the richest in the peer group; forward PE compresses to 59.71.
Pros
- ✓5-year earnings growth of 21.1% materially outpaces 5-year revenue growth of 7.9%, indicating sustained margin expansion has driven profit growth beyond volume gains over the period.
- ✓ROE of 53.31% ranks 2nd of 6 FMCG peers (vs. HINDUNILVR 21.6%, ITC 29.3%, GODREJCP 15.1%), though this figure is partially inflated by the high leverage ratio.
- ✓Debt trend is classified as falling, with FCF positive in 4 of the tracked years and ROE above 15% in 4 of the tracked years — indicating continued cash generation alongside deleveraging.
- ✓Q4 FY26 net profit of Rs 678 crore (+21% YoY) and a highest-ever declared dividend of Rs 90.5/share reflect continued earnings delivery in the most recent reporting period.
- ✓ROE of 76.34% ranks 1st of 6 FMCG peers (next best: BRITANNIA at 53.31%), demonstrating high capital efficiency over the available 3-year window.
- ✓Quality score of 61 ranks 1st in the peer set (range 38–58 for peers), with FCF positive in all 3 reported years and a 5-year earnings CAGR of 27.4%.
- ✓Price action is constructive: up 20.95% over 12 months and 19.26% over 3 months; RSI of 52.96 is in neutral territory with the stock above both 50-DMA and 200-DMA.
- ✓Revenue growth of 23% over 5 years and profit margin of 15.14% reflect durable top-line and bottom-line expansion over the available history.
Cons
- ✗D/E of 26.875 is a structural outlier for the FMCG sector, where the peer median D/E is well below 1.0; this leverage level amplifies financial risk in adverse demand or input-cost scenarios.
- ✗Price 5157.5 is below both the 50-DMA (5555.48) and 200-DMA (5829.09); the stock has declined 16.25% over 3 months and 18.6% from its 52-week high, with RSI at 27.97.
- ✗Quality score of 50 ranks 3rd of 6 FMCG peers, behind NESTLEIND (61) and HINDUNILVR (58), reflecting that the leverage-elevated ROE does not translate into a top-tier composite quality assessment.
- ✗5-year revenue growth of 7.9% is modest for an FMCG business, indicating earnings growth has been driven primarily by margin expansion rather than top-line volume or pricing acceleration.
- ✗D/E of 8.621 with a rising debt trend is elevated relative to FMCG peers and structurally inconsistent with the asset-light franchise model typical of this peer group.
- ✗Persistence data spans only 3 years — the consistency score of 65/100 and high ROE cannot be verified across a broader cycle, limiting confidence in the long-run track record.
- ✗Trailing PE of 78.27 is the richest in the 6-peer FMCG set; the forward PE of 59.71 still exceeds all five peers on a trailing basis, compressing the margin relative to sector valuation.
- ✗News flow is sparse (4 articles total, 0 positive) with one FSSAI regulatory action headline involving Nestle among named brands — a low-level but active regulatory watchpoint.
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For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Comparison reflects current public data; consult a registered adviser before any investment decision.