Road Map

• Introduction
• Economic analysis
• Industry analysis
• Technical analysis
• Comparison
• Recommendations
• Suggestions
 NESTLE India
- Since 2010

tle India is a subsidiary of Nestle SA of Switze

Nestlé’s relationship with India started
1912, when it began trading as the
nestle anglo-swiss condensed milk
Company (export) limited, importing
and selling finished products in the
Indian market. After independence, in
response to the then economic
policies, which emphasized local
production, nestle formed a company
in India, namely nestle India ltd, and
set up its first factory in 1961 at
Punjab Today, nestle is the world's
largest and most diversified food
company. It has around 2, 50,000
 Global economy
GWP rose by 3.2% in 2008, led by China (9%, equal to 21% of
global growth), the US (1.1%, or 12% of growth)
al economy can be seen as the economy of global society and national economie
onomies of local societies, making the global one. depending on the model
, the valuation that is arrived at can be represented in a certain currency,
h as 2006 US dollars
economy has noticed a certain slowdown from
ging Asia slowed from 9.8% to 6.8%;
ging Europe from 5.4% to 2.9%;
Commonwealth of Independent States from 8.6% to 5.5%;
non-OECD) Western Hemisphere from 5.7% to 4.2%;
Middle East from 6.3% to 5.9%; and Africa from 6.2% to 5.2%.
 Economic Indicators

• Gross domestic product

• Exchange Rate
• Union budget
• Foreign Institutional
Investors
• Agriculture and monsoon
• Inflation
 Industry analysis

• Introduction to industry
• Porters model
• SWOT analysis
• BCG matrix
• Indian food processing industry is widely
recognized as a 'sunrise
industry' having huge potential for uplifting
agricultural economy
• The industry is estimated to be worth around
US$ 67 billion and employing about 13 million people
directly and about 35 million people indirectly ,
• It is expected that processed food output will
grow at a strong 7 % CAGR in terms of value from
55.6 billion US$ in 2005 to 95.6 billion US$ in 2013
 Industry analysis

• Introduction to industry
• Porters model
• SWOT analysis
• BCG matrix
 Porters model

• The rivalry between existing sellers in the

market.
• The power exerted by the customers in the
market.
• The impact of the suppliers on the sellers.
• The potential threat of new sellers entering
the market.
 Industry analysis

• Introduction to industry
• Porters model
• SWOT analysis
• BCG matrix
 SWOT analysis

Strengths Weakness
Parent support Exports
Brand name Supply chain
Product innovation

Opportunities Threats
Expansion Competition
Product offerings Changing customer trends
Global Hub
 Industry analysis

• Introduction to industry
• Porters model
• SWOT analysis
• BCG matrix
BCG matrix
 Fundamental analysis
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Britannia Vs Nestle
 Technical analysis

– Dow Jones theory

– Elliott Wave Theory
– Comparison of BSE SENSEX with
share prices of share market
– Analysis of Chart Patterns
– MACD Analysis
– Relative Strength Index
 Dow Jones theory

• The stock market discounts all news

• The market has three movements
• Market Trends have three phases
• Trends are confirmed by volume
• Stock market averages must confirm each
other
• Trends exist until definitive signals prove that
they have ended
Dow Jones theory
 Technical analysis

– Dow Jones theory

– Elliott Wave Theory
– Comparison of BSE SENSEX with
share prices of share market
– Analysis of Chart Patterns
– MACD Analysis
– Relative Strength Index
 Comparison with Market

• During the period in which the study has carried out there have been
several events such as Lehmann brothers crash, black Monday of 2006,
satyam fiasco and several other minor ones as well but the company
has shown good resistance against all such conditions the reasons
discovered may be
• The sector of food processing may be considered as an ever green
sector and despite any fiasco that happens in the world the company
will do well until it performs any illegal activities and since the company
is very well positioned in India the investors will show a specific deal of
preference towards investing in this ,since as long as there are people
and as long as they are hungry the food industry may function very
well .
•  
 Technical analysis

– Dow Jones theory

– Elliott Wave Theory
– Comparison of BSE SENSEX with
share prices of share market
– Analysis of Chart Patterns
– MACD Analysis
– Relative Strength Index
 Elliot wave theory

• The chart patterns that are shown here are very

prominent reversal patterns for the stock market. The
pattern is, Head and Shoulder Pattern appeared after
a long Bull trend in the scrip since it was listed on the
stock exchange. The formation of left shoulder started
on February 13, 2008 and it ended on September 30,
2008. Then we can see a sharp decline in share price
that is because of recession
•                                
ELLIOT WAVE THEORY
 Technical analysis

– Dow Jones theory

– Elliott Wave Theory
– Comparison of BSE SENSEX with
share prices of share market
– Analysis of Chart Patterns
– MACD Analysis
– Relative Strength Index
 MACD analysis

• the difference between MACD and 9 days Moving

Average, is in upward direction which shows the
Bullish sentiment in the market. Also Red line is
above Blue line which clearly indicates the bullish
momentum. So we can assume that prices of the
stock would continue to rise for some time. So
MACD recommends that it is the time to buy stocks
as prices of stocks are likely to go up.
MACD ANALYSIS
 Technical analysis

– Dow Jones theory

– Elliott Wave Theory
– Comparison of BSE SENSEX with
share prices of share market
– Analysis of Chart Patterns
– MACD Analysis
– Relative Strength Index
 RSI

• RSI indicator is lying between 30 and 70 and sometimes has

gone upward 70. Movement beyond 70 shows oversold
condition. Here the stock price has shown a continuous rise and
fall between 50 to 70 and then afterward it is stagnant for some
time and then again there is little bit up and down in share price
but it is above 50. The trend shows that current share price will
remain between 50 and 70. So the trend corroborates the
assumption that we may see price rise for the stocks in coming
days.
 Invest…..Invest….

• The products of this sector can be termed as GIFFEN Goods,

where the demand does not very much with price
• India is an agriculture based country and since the demand
for food will be equal in the country an investor can always
invest in such companies
• Nestle has shown positive results during the past 5 years and
has planned to invest a lot in new products and exploring new
markets which suggests that the company may still
experience a lot of growth in the coming years
 Conclusion

• Indian food industry expected to grow to US$

280 billion by 2015 and generate an
additional employment for approximately 8.2
million people. Also, food consumption in
India is estimated to grow at a CAGR of 5.32
% by 2013.Futher, it is expected that
processed food output will grow at a strong 7
% CAGR in terms of value from 55.6 billion
US$ in 2005 to 95.6 billion US$ in 2013