NESTLE | 10% upside and 3 target (2771,2810 and 3220)
# Opinion
10% upside with 3 Target (2771,2810 and 3220) in next 3 to 6 months
# CMP - Rs. 2507 (30/04/2024)
# Entry Signal
2497 is good support tested many times in hourly and daily timeframe so buy near that level
# Setup Fail
If Price falls below 2425 then setup fails and strategy to be revised
# Fundament Study
All time high REVENUE, PROFIT
Debt to Equity - 0.10
ROCE and ROE - 153% and 122%
Promoter and Strong hands - 62.8% & 21.1%
Consistent Sales and Profit growth - 10% & 15%
# Technical Study
Currently trading at 10% below previous high without any good reasons
Trading in a range from 2425 to 2630
# Targets
A. With good fundamentals company with at least reach previous high i.e. 2771
B. Historically company's PE range from 75 to 89, so considering the same logic that it will again reach PE of 85 (conservatism) then target is 2810
C. Historically company's Price to Book range from 72 to 95, so considering the same logic that it will again reach Price to Book of 93 (conservatism) then target is 3220
You can view historical PE and Price to Book in screener.in
# Caution
Currently Nestle is in bad news for its products having cancer causing elements. However, I don't know how/whether it will affect the share price
Incase if you guys have any thing to add or correct please let me know in comment.
10% upside with 3 Target (2771,2810 and 3220) in next 3 to 6 months
# CMP - Rs. 2507 (30/04/2024)
# Entry Signal
2497 is good support tested many times in hourly and daily timeframe so buy near that level
# Setup Fail
If Price falls below 2425 then setup fails and strategy to be revised
# Fundament Study
All time high REVENUE, PROFIT
Debt to Equity - 0.10
ROCE and ROE - 153% and 122%
Promoter and Strong hands - 62.8% & 21.1%
Consistent Sales and Profit growth - 10% & 15%
# Technical Study
Currently trading at 10% below previous high without any good reasons
Trading in a range from 2425 to 2630
# Targets
A. With good fundamentals company with at least reach previous high i.e. 2771
B. Historically company's PE range from 75 to 89, so considering the same logic that it will again reach PE of 85 (conservatism) then target is 2810
C. Historically company's Price to Book range from 72 to 95, so considering the same logic that it will again reach Price to Book of 93 (conservatism) then target is 3220
You can view historical PE and Price to Book in screener.in
# Caution
Currently Nestle is in bad news for its products having cancer causing elements. However, I don't know how/whether it will affect the share price
Incase if you guys have any thing to add or correct please let me know in comment.