12 May 2020 Nestle Indias (NEST) 1QCY20 double-digit domestic sales growth in the current environment (due to the COVID-19 crisis) is impressive. While higher milk and milk derivative costs have led to margin compression, long- term earnings prospects remain robust. Valuations of 67x CY21E EPS and 56.5x CY22E EPS fully factor in the upside from a 1-year perspective. Domestic sales grew 10.7% during the quarter, largely driven by volume and mix. EBITDA grew 4.7% YoY to INR8b (v/s est. INR7.8b), PBT was flat YoY at INR7.