Nestle India Ltd. share price target

EBITDA has risen to 22.1% in H1CY18 from 16.2% in H1CY17, mainly sanjay.manyal@icicisecurities.com on account of 410 bps decline in raw material cost in addition to...

21 August 2018 New products/innovations contributed 3% of domestic sales in 1HCY18, as against 2.8% in 1HCY17 (2.6% in CY17). Of the 36-38 new products launched recently, around 25 have been retained. The rest did not scale up as expected, and thus, were either culled or pulled back to the drawing board. have not lived up to the expectations. The key reason was the difference between the intention of the product and the consumer perception. Nestle India Company v/s listed peers growth recovery post Maggi crisis. This was because the industry was more affected by GST destocking and the recovery from this was relatively fast. Volumes grew ~9% in 1HCY18, while adjusted value growth was 13.8% in the domestic business. NEST commands a market leadership in ~85% of its portfolio.

The Growth Story Continues: Nestle India's revenue grew by 12.3% YoY, led by volume growth across categories. The gross margins expanded by 456 bps on YoY basis mainly led by soft commodity prices and lower overhead costs due to cost efficiency programme.

Revenue decreased by 2.13% to Rs. 2678.57 Cr in Q2CY18 when compared to the previous quarter. Nestle India Ltd Q2CY18 results Comment

ICICI Securities Ltd | Retail Equity Research Nestl posted sales growth of 12.3% YoY to | 2698.4 crore (I-direct estimate: | 2844.3 crore) on account of 8% domestic sales growth...

saw growth of 13.4% mainly on the back of volume growth Nestle India Ltd. (NIL) reported strong overall last one year in this segment. Company's realisation Volume growth drive Q1CY18 performance performance during Q1CY18 driven by volume led revenue growth and improved profitability on the back of favourable commodity prices and efficiency measures adopted by the management. Sales for the quarter were...

We maintain our Hold rating on Nestle with an upward revised target price of Rs 9,843 (earlier Rs 8,008). Domestic sales registered 11% YoY growth in Q1CY18 led by volume growth supported by increasing penetration and rebuild of Maggi noodles. Gross margins expanded 300bps YoY led by lower commodity prices (milk and milk solids). EBITDA grew 35% YoY driven by lower overhead costs. PAT grew 38% YoY aided by 35% YoY rise in other income. Company's venture into breakfast cereals segment with significant headroom for growth current market size at ~$360mn and expected to grow at a CAGR of 16% over the next 5 years augurs well. Softer input prices and cost efficiencies are expected to drive margin expansion and strong earnings growth...

Thrust on Volume to Drive Growth Further: Nestle India's Revenue grew by 10.6% YoY, led by volume growth and increased product penetration. EBITDA margin expansion of 449bps was favorably impacted by lower commodity prices, particularly milk and milk solids and a considerable reduction in employee cost.

Revenue grew by 5.68% to Rs. 2736.84 Cr in Q1CY18 when compared to the previous quarter. Nestle India Ltd Q1CY18 results Comment

Sales for the quarter were up 6.4% YoY to | 2757.2 crore (I-direct estimate: | 2854.8 crore) led by 6.3% domestic sales growth. However, on a comparable basis, domestic sales saw growth of 13.4% mainly on the back of volume growth across segments as NIL launched many variants in the last one year in this segment Operating profit increased 34% to | 704.9 crore (I direct estimate: | 633.7 crore) while margins witnessed an improvement of 531 bps to 25.6% mainly on the back of lower material costs,...