Nestle India Ltd. share price target

Nestle India has posted robust operating performance in 3QCY17. While its net sales came in at Rs25bn (vs. our estimate of Rs25.6bn), net profit rose by 23.3% YoY to Rs3.4bn (vs. our estimate of Rs2.9bn) and EBITDA margin rose by 260bps YoY to 23.4%. Introducing CY19E estimates for Nestle, we expect revenue and earnings CAGR of 12.5% and 16.6%, respectively through CY16-19E. However, as valuations at 41.2x CY19E earnings cap any near-term upside, we...

ICICI Securities Ltd | Retail Equity Research Nestl India reported a robust set of numbers in Q3CY17 with healthy volume growth in domestic business. Net sales grew by 7.5% YoY to | 2500.6 crore (I direct estimate: | 2508.0 crore) on the back of strong 9.1% YoY growth in domestic business largely led by healthy volume growth. Export revenue grew by 2.6% to | 160.0 crore. Growth in Maggi Noodles drove the volume growth. Company continued its innovation during the quarter and launched Maggi...

Reported 3QCY17 net sales grew 7.9% YoY (9.1% YoY comparable growth due to GST accounting) to INR25b. Management stated that sales growth was volume-led across all product groups. EBITDA grew 19.2% YoY (est. of -5%) to INR5.8b. Adj. PAT increased 17.8% YoY (est. of -7.5% YoY) to INR3.5b. EBITDA margin expanded 220bp YoY: Gross margin contraction was lower than expected (-100bp to 56.6% v/s est. of -150bp). Staff costs rose 20bp YoY. However, the impact of higher material and staff costs was offset by a sharp decline of 340bp YoY in other expenses. EBITDA margin thus expanded 220bp...

Revenue fell by 3.6% to Rs. 2386.54 Cr in Q2CY17 when compared to the previous quarter Revenue fell by 3.6% to Rs. 2386.54 Cr in Q2CY17 when compared to the previous quarter

ICICI Securities Ltd | Retail Equity Research Nestl India (NIL) reported a healthy set of numbers despite destocking in June ahead of our estimates on both revenue and profitability front. Revenue for the quarter grew by 7.3% YoY to | 2469.1 crore, against our estimate of | 2289.0 crore led by 8.8% domestic sales growth despite some impact on revenues in the month of June due to de-stocking ahead of GST implementation. The domestic growth was largely volume driven led by new product launches and re-gaining of Maggi's market position. However, the...

Nestl India has reported a good set of numbers for 2QCY17 in spite of trade pipeline correction in June prior to GST roll-out. While net sales increased by 6.9% YoY to Rs23.9bn (vs. our estimate of Rs22.8bn), EBITDA fell by 5.9% YoY to Rs4.6bn (vs. our estimate of Rs4.3bn). Net profit for the...

The Year of Aggression with a Purpose - for Nestle India: Nestle India reported a surge of 6.8% in its net profit after tax for Q1CY17. Driven by volume growth across products including Maggi noodles, the FMCG major posted net profit of Rs. 3068 Mn for the first quarter this year. The companyfollows the calendar year January-December in reporting financial results. Its net sales during the quarter under review were at Rs. 24919 Mn up 9.1% as against Rs. 22837 Mn last year.

ICICI Securities Ltd | Retail Equity Research Nestl India (NIL) reported a healthy set of numbers with revenue inline with estimates. The company has adopted Ind-As from January 1, 2017. Hence, our estimates are not comparable for line items. Sales for the quarter was up 9.1% YoY to | 2575.7 crore (I-direct estimate: | 2566.2 crore) led by 9.7% domestic sales growth. The company reported volume growth across categories and has benefited from the price hike taken in previous quarters Raw material cost as a percentage of net sales has increased 315 bps...

Nestl India has posted 8.7% YoY rise in net sales to Rs24.8bn in 1QCY17 with domestic business growing by 9.4% and exports remaining flat on YoY basis. EBITDA declined by 5.5% YoY to Rs5.2bn, while net profit grew by 6.8% YoY to Rs3.1bn. We expect Nestl to post 12.8% and 12.2% CAGR in revenue and earnings, respectively through CY16-18. However, as valuations continue to remain highly prohibitive at 44.4x CY18E earnings, we maintain our REDUCE recommendation on the stock with a revised Target Price of Rs5,551 (from Rs5,647 earlier). Domestic Biz Spurs Growth, but Margins Remain Under Pressure As per the management, growth in domestic business was led by increased volume across...

Accelerating the Game in India; Building the Base for Another100 Years Nestle India recorded a YoY decline of 8.7% in its net profit from Rs. 1832 Mn inQ4CY15 to Rs. 1673 Mn for Q4CY16, hit by higher tax expense and demonetization that impacted its domestic sales. However, net sales of the company for Q4CY16 were up 16.7% to Rs. 22862 Mn as against Rs. 19595 Mn in the correspondingquarter last fiscal on a base impacted by Maggi noodles issue.