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: 61/100
Nestle India Ltd.
FMCG
Quality Score: 67/100
At a glance
| Metric | BRITANNIA | NESTLEIND |
|---|---|---|
| Quality Score | 61/100 | 67/100 |
| P/E (trailing) | 52.3 | 81.6 |
| Forward P/E | 40.9 | 62.3 |
| ROE | +53.3% | +76.3% |
| Profit margin | +13.2% | +15.1% |
| Debt-to-equity | 26.88 | 8.61 |
| Dividend yield | +1.64% | +0.81% |
| 1Y price return | +3.7% | +27.0% |
| From 52w high | -12.9% | -0.9% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.91 | 2.42 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Britannia Industries (₹5,520) is an FMCG biscuits and dairy major that reported Q4 FY26 net profit growth of 21% YoY to ₹679 crore and declared a ₹90.5 dividend, yet the stock trades 12.9% below its 52-week high and remains under both its 50-DMA and 200-DMA. The company carries a debt-to-equity of 26.9, markedly above FMCG sector norms, though the debt trend is categorised as falling. Trailing PE of 52.3 sits in the middle of its peer range, while ROE of 53.3% ranks second among the six FMCG peers tracked.
Nestle India trades at ₹1,482.40, up 27.0% over the past 12 months and near its 52-week high with a drawdown of just -0.93%. The company ranks first among 6 FMCG peers on both ROE (76.34%) and quality score (61), but carries the highest trailing PE in the peer group at 81.55x and an elevated debt-to-equity of 8.61 with a rising debt trend. RSI at 78.51 signals overbought conditions across both the 50-DMA and 200-DMA.
Pros
- ✓ROE of 53.3% is second among 6 FMCG peers tracked (NESTLEIND leads at 76.3%; HINDUNILVR at 21.6%), reflecting high return on the equity base — though partly amplified by the elevated leverage.
- ✓Q4 FY26 net profit grew 21% YoY to ₹679 crore alongside a ₹90.5 per-share dividend declaration, indicating near-term earnings momentum and capital return to shareholders.
- ✓Five-year earnings CAGR of 21.1% materially outpaces 5-year revenue CAGR of 7.9%, pointing to sustained margin expansion over the medium term.
- ✓Debt trend is classified as falling; forward PE of 40.9 is meaningfully lower than trailing PE of 52.3, suggesting consensus expects earnings to grow into the current valuation.
- ✓ROE of 76.34% ranks first among the 6-stock FMCG peer set, well above Britannia (53.31%), Hindustan Unilever (21.6%), and Godrej Consumer (15.1%), indicating high capital efficiency relative to peers.
- ✓Revenue has grown at 23.8% over 5 years and earnings at 27.4% over the same period, reflecting consistent compounding of the top and bottom lines.
- ✓Quality score of 61 places NESTLEIND at the top of its FMCG peer group (next: HINDUNILVR at 58), and the stock carries a profit margin of 15.11%.
- ✓Price is 27.0% higher over 12 months and 14.4% higher over 3 months, with price above both the 50-DMA (₹1,293.98) and 200-DMA (₹1,244.37), reflecting sustained positive price momentum.
Cons
- ✗Debt-to-equity of 26.9 is substantially above FMCG sector norms — peers HINDUNILVR and NESTLEIND carry far lower leverage — raising the question of whether the high ROE reflects operational efficiency or financial leverage.
- ✗Price trades below both the 50-DMA (₹5,746) and the 200-DMA (₹5,851), with a 12.9% drawdown from the 52-week high and only 3.7% price appreciation over 12 months.
- ✗Quality score of 50 ranks 3rd of 6 peers despite the high ROE; FCF was positive in only 4 of the available years and ROE exceeded 15% in only 4 of available years, indicating the headline ROE figure does not fully reflect multi-year consistency.
- ✗Revenue growth of 7.9% CAGR over 5 years is modest for a consumer staples company, suggesting volume and pricing power have not compounded at the same rate as earnings — margin-driven rather than volume-driven earnings growth carries its own durability risk.
- ✗Debt-to-equity of 8.61 is elevated relative to FMCG norms and the debt trend is classified as rising; this is an atypical capital structure for a consumer staples business and warrants monitoring.
- ✗ROE persistence data covers only 3 years above 15%, and FCF is positive in only 3 of the available years, making it difficult to assess whether the current profitability metrics are structurally durable.
- ✗RSI of 78.51 is in overbought territory; the price is 14.5% above the 50-DMA and 19.1% above the 200-DMA, indicating a significant extension from medium- and long-term averages.
- ✗Trailing PE of 81.55 is the highest in the 6-stock FMCG peer group; the forward PE of 62.28 implies meaningful earnings growth expectations are already embedded in the current price.
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