The 37 reports from 15 analysts offering long term price targets
for Nestle India Ltd. have an average target of 17380.14. The consensus estimate
represents an upside of 1.27%
from the last price of 17161.60.
For Q3CY20, Nestle India reported revenue growth of 10.1% YoY (+16.1% QoQ) to INR 35,417 mn Domestic Sales increased by 10.2% YoY largely driven by volume & mix. Along with this, Export Sales increased by 9.4%. EBITDA margin improved by 158bps YoY to 24.9% (+44bps QoQ) mainly due effective inventory management and other expenses Net Profit declined marginally by 1.4% YoY / (up by 20.7%) to INR 5,871 mn with NPM of 16.6% (down 194bps YoY / up 62bps QoQ);...
Nestle India (NEST) reported a perfectly in-line performance across key metrics for Q3CY20. Reported Revenue grew 10.2% YoY at Rs. 3,525cr in line with our estimate of Rs. 3,520cr. Domestic sales reported 10.2% driven by 7% volume and 3.2% price/mix led growth as per our estimates.
Nestl's Q3CY20 results beat our estimates on all counts with 10% volume and mix growth in the domestic market. In-house consumption brands witnessed double digit growth supported by improved supply situation. However, out of home categories continues to remain impacted due to pandemic fears. E-com business (4% contribution) witnessed strong acceleration with 97% growth. Exports increased 9.4% YoY. We have revised our CY20E, CY21E and CY22E EPS estimates at Rs 223...
Mphasis: We maintain BUY on Mphasis (MPHL), following a strong 2Q performance and high growth visibility ahead. We are positive on MPHL, based on (1) large deal wins (TCV of USD 1bn+ TTM new deal wins with highest-ever TCV in 2Q), with the increasing deal size in NewGen/Digital wins and deal pipeline (+75% YoY) providing high growth visibility, (2) strong BFS portfolio driven by consolidation deals in large accounts as well as the mortgage segment, (3) services re-alignment, integrated deals (Apps, IMS, BPM) and the focus on hyperscaler partnerships have supported 3x growth in cloud deal pipeline (27% and 60% of cloud pipeline includes AWS/Azure channel), and (4) increased focus in Europe geography. MPHL's valuation discount to mid-tier IT is expected to reduce, supported by an improving mix of high-growth Direct business limiting the impact from DXC and on FCF yield >6%, ~30% RoIC, FY20-23E EPS CAGR at 14% (16.5% over FY21-23E). Our target price of Rs 1,655 is valued at 20x Sep-22E EPS. Crompton Consumer: Crompton posted a robust 2QFY21, beating our as well as the street's expectations. ECD growth of 18% was primarily driven by volume growth (not led by channel filling and pent-up demand). It was heartening to know that order frequency by trade partner has increased and reflects healthy retail demand. Crompton saw healthy market share gains across segments. Lighting margin recovery was strong with a price hike, product mix and cost control. B-C lighting saw 9% YoY volume growth while B-B (ex B-G) was flat. Owing to quicker recovery in B-C,...
Nestle India (NEST) has returned to double digit growth, meeting our expectations for 3QCY20. NEST's 3QCY20 revenue grew by just 10.1% YoY to Rs35.4bn (vs our est. 11.5% growth to Rs35.86bn). Domestic sales grew by 10.2% YoY to Rs33.5bn while exports (~5% of sales for the quarter) grew by 9.4% YoY to Rs1.75bn. The quarter witnessed growth driven by an improved supply situation, as factories returned to normal output. Enhanced by an increase in inhome consumption, key brands like MAGGI Noodles, MAGGI Sauces, KITKAT, Nestl MUNCH, NESCAF CLASSIC and NESCAF SUNRISE witnessed double-digit growth each. Demand in Out of Home' channels improved during the quarter but continued to be affected due to the current...
Commits to invest Rs 26bn in India over next 3-4 years We are upgrading NEST to HOLD from reduce given 1) resilient performance 2) growth visibility given Rs26bn investment program 3) sustained performance in key brands like Maggi, Kitkat, Munch, Nescafe 4) 80%...
Nestle is well positioned to capture the immense growth opportunity given its market leadership, consumer loyalty and trust, lower penetration, healthy cash flow generation, growing demand for packaged / instant food given tailwinds from rising in-home consumption. We initiate coverage with BUY
Multi Commodity Exchange: MCX market share increased to 96.7% (+530bps YoY), which demonstrates the core strength of the franchise. Both revenue and margin performance was weak in 1Q but stood better than expectation. Trading volume was down 37% QoQ in 1Q due to the impact of COVID-19, change in exchange timing (April-20) and crude fiasco, which recovered strongly to pre-COVID levels in July-20 (Rs 346bn, ~5% below 4Q level). Bullion (57% of volume) continues to drive volume (+52% above 4Q level) supported by volatility in gold/silver prices. Crude (~25% of volume) is impacted by the high margin requirement (~100%) and extreme volatility. Tailwinds like institutional participation, indices launch (Aug-20), and increasing retail penetration should boost volumes. We increase the EPS estimate for FY21/22E by +27.4/+13.6% to factor in volume recovery and better margin. The stock has rallied ~48% in the last three months and now trades at a PE of 33/28x FY21/22E EPS. We assign 30x to June-22E core PAT and add net cash (ex-SGF) to arrive at a target price of Rs 1,600. Maintain ADD. V-Guard Industries: V-Guard posted a disappointing set of numbers as the company clocked revenue/EBITDA decline of 42/87% YoY (HSIE expectation -45/-52% YoY). Non-south performance remained weak and contracted by 47% (21% dip in 4QFY20). The company is the No. 3-4 player in non-south markets, and channel partners continue to prefer market leaders on priority. It impacted V-Guard even in 4QFY20. Stabiliser was most impacted (51% dip in Electronics segment) as demand of RAC was impacted sharply by the lockdown. Electricals/Consumer...
Though the supply & demand conditions for most categories are normalising, prepared dishes segment is having a different tale. One of the clear trends in the last four months has been increasing demand for convenient food. Maggi Noodles, ketchup, Masala magic witnessed strong demand conditions in the June quarter. However, the company could not supply the products in April given most manufacturing facilities either remain closed or are working on very low utilisation. Though manufacturing operations returned to normal in June-July, demand is still outpacing...
Nestle India (NEST) saw deterioration in its sales growth rate in 2QCY20 from the performance it has been delivering over the last many quarters mainly due to the COVID-19 induced lockdown leading to production disruption across factories. On an average, factories were operating at 75% of capacity during 2QCY20. There was also severe demand impact on the out-of-home channel while in-home consumption categories (mainly milk based portfolio and Nescafe) did well during the quarter. After initial supply constraints, MAGGI also witnessed solid growth towards the end of the quarter. NEST's 2QCY20 revenue grew by just 1.7% YoY to Rs30.5bn (vs our est. 9% growth to Rs32.7bn). Domestic sales grew by 2.6% YoY to Rs29.1bn while exports (~4.4% of sales for the quarter) declined by 9.3%...
production disruption across factories. Demand in Out Of Home channel was severely reduced. The OPM increased 76 bps to 24.51% and the operating profit up by 5% to Rs 747.56 crore. Other income fell 48% to Rs 37.93 crore in Q2FY'21 compared to Rs 72.59 crore in Q2FY'20 while interest cost was up by 27% to Rs 40.80 crore. Depreciation decreased by 2% to Rs 92.42...
We are cutting CY20-23 EPS estimates of Nestle by 3.2% to 4.2% on disappointing performance in 2Q20. Although Nestle posted positive sales growth of 2.6% despite setback in vending business, constraints in production and distribution limited gains in a very strong quarter for food essentials. We were also surprised at GM pressure given benign prices of...
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.
CY19 was another year of double-digit sales and volume growth in Prepared Dishes (largely 2010, NEST has witnessed highest growth in the Chocolates and Confectionary segment in 2019 with over 15% volume/value growth along with market share gain for the first time in many years. With high category growth opportunity in foods and NESTs focus on volume led double-digit growth backed by new launches, prospects of top-line growth remain bright. The emphasis on volume growth focus is clearly becoming more Net sales stood at INR123.7b in CY19, growing 9.5% YoY. However, due to a sharp decline in export sales, royalty expense to net sales appear to have increased by EBITDA grew 5.7% YoY to INR28.9b in CY19. On 5-year basis, NESTs PAT CAGR looks relatively weak, primarily due to the Nevertheless, the close to double-digit PAT CAGR for 5 years is still a Capex for CY19 stood at INR1.6b with capex to sales up 10bp YoY to 1.3%.
Mr. Suresh Narayanan, Chairman and Managing Director, Nestl ndia said, The COVID-19 crisis is having an extraordinary and far reaching impact on our lives. For us at Nestl India, every crisis takes us back to our roots as an 108 year old organization serving India - our purpose and values; protecting our people, their lives and livelihood, the thousands of partners...
On account of the limited upside from the current market price, we reiterate our rating on the stock as HOLD, with a revised target price of Rs. 17,460 based on 62x CY21E adj. EPS. Domestic sales drives performance Nestle India Limited registered a revenue growth of 10.7% YoY in Q1CY20 to reach Rs. 3,325cr (vs. Rs. 3,003cr in Q1FY19). This growth was largely supported by increase in Domestic sales (10.7% YoY) driven by volume and mix, and improved Export sales (12.9% YoY) on account of lower base. Brands like Maggi, KitKat, Nestle Munch helped...
