Nestlé India Limited

“Nestlé India is a genuinely world-class consumer franchise — zero debt, 100%+ ROCE, cultural brand dominance in Maggi and Nescafé, and a 15-20 year India consumption runway — but at 81x trailing and 62x forward earnings it is priced for perfection with a probability-weighted 10-year return of only 2-3x. The governance overhang from Nestlé SA's royalty extraction mechanism and a non-trivial food safety tail risk are not adequately compensated at current valuations. This is a business worth owning at the right price; INR 900-1,100 (40-50x forward) would be that price. Until then, track it.”