Nestle India Ltd. share price target

We remain optimistic about the company's long-term prospects. With a 10% upside potential from the CMP, we maintain our BUY rating on the stock.

Nestlé sees strong growth potential in India, as its per capita packaged food consumption remains low. With 60 million people expected to join the middle- and high-income segments by 2030, rising affordability will boost demand.

The company's revenue stood at Rs. 47,797 Millions in Dec 24 quarter, showing a 3.9% increase compared to Rs. 46,004 Millions in the corresponding quarter of the previous year whereas there was a de growth of 6.4% on QoQ basis. In 9M FY25 basis, the company reported a revenue of Rs. 146,977 Millions a growth of 2.8% on annual basis.

NEST continues to manage profits amidst inflation in cocoa and coffee. Wheat and palm have also turned inflationary

Nestle India (Nestle) reported a 4% YoY revenue growth (est. 5%) in 3QFY25. Domestic sales grew 3% YoY, hurt by a slowdown in urban consumption and higher commodity prices.

We remain optimistic about the company's long-term prospects. With an 11% upside potential from the CMP, we maintain our BUY rating on the stock.

Nestlé's Q2FY25 performance fell below our expectations, primarily due to low consumer demand, the impact of a high base from H1FY24, and commodity headwinds.
Increased competition has led to higher advertising and promotion (A&P) expenses, which in turn compressed EBITDA margins.

Nestle’s Q2FY25 revenue growth was disappointing; it further de-accelerated to 1% YoY (vs 4% in Q1FY25) due to subdued consumer demand.

Sales came in 4% below consensus while EBITDA was 10% lower due to margin being 152bps below expectations

Nestle India’s (Nestle’s) Q2FY2025 numbers were weak, missing estimates on all fronts. Muted revenue growth at 1.3% y-o-y along with 144 bps y-o-y decline in OPM and lower other income lead to 9.1% y-o-y decline in adjusted PAT.

We downgrade Nestlé India to REDUCE from Add with a 14.3% cut in TP to Rs2,400 amid sustained topline pressures.

Nestle India (Nestle) reported weak revenue growth of 1% YoY (est. 6%) in 2QFY25. Last eight-quarter average revenue growth was 10%. Domestic sales grew 1% YoY, impacted by muted demand and higher commodity prices.

NEST has underperformed our estimates across the board in Q1FY25.
NEST’s reported revenue was INR 48,140 Mn, a growth of 3.3% YoY/ (-8.6% QoQ), missing our estimates by 4.9%.

We maintain our BUY rating on the stock.

Nestle India (Nestle) reported weak 3.3% YoY revenue growth (est. 8.6%) in 1QFY25. Last eight-quarter average revenue growth was 14%.