We maintain our Hold rating on Nestle with an upward revised target price of Rs 9,843 (earlier Rs 8,008). Domestic sales registered 11% YoY growth in Q1CY18 led by volume growth supported by increasing penetration and rebuild of Maggi noodles. Gross margins expanded 300bps YoY led by lower commodity prices (milk and milk solids). EBITDA grew 35% YoY driven by lower overhead costs. PAT grew 38% YoY aided by 35% YoY rise in other income. Company's venture into breakfast cereals segment with significant headroom for growth current market size at ~$360mn and expected to grow at a CAGR of 16% over the next 5 years augurs well. Softer input prices and cost efficiencies are expected to drive margin expansion and strong earnings growth...