28 July 2020 Nestl (NEST)s revenues for the quarter disappointed, weighed by ephemeral lockdown issues, which impacted manufacturing. We believe this would not pose much of a challenge going forward. EBITDA margins were in-line likely due to ad spend cuts, aligned with peers that have reported their results thus far. NEST remains among the best structural plays in the Indian Consumer and (b) the evident revival in topline and earnings momentum ahead of peers in recent years. Valuations are, however, rich at 67.2x CY21 EPS and 56.6x CY22 EPS. Maintain Domestic sales grew 2.6% YoY during the quarter, whereas export sales declined 9.3% YoY. particularly the cost of milk and its derivatives. Higher staff costs as a percentage of sales (+170bp YoY to 12.1%) and lower other expenses as a percentage of sales (-440bp YoY to 19.