Nestle India Ltd. share price target

Reported net sales grew 8.9% YoY to INR30b (our estimate: INR31.7b) in 1QCY19. Domestic sales increased 10.2%, while exports fell 8.9% due to lower coffee exports to Turkey. EBITDA grew 5.3% YoY to INR7.5b (our estimate: INR7.4b). Adj. PAT was up 8.2% YoY to INR4.8b (our estimate: INR4.6b). Gross margin shrank 60bp YoY to 58.5% due to higher commodity cost. EBITDA margin, too, contracted by 90bp YoY to 25% owing to higher staff costs...

Nestle India, a subsidiary of Nestle S.A of Switzerland (~63% share). Nestle is a strong play in the food & beverage space with leadership in ~85% of the product portfolio. The company has presence in milk products & nutrition, beverages, prepared dishes and cooking aids, and chocolate and confectionery. The company has 8 manufacturing facilities in India with products...

ICICI Securities Ltd | Retail Equity Research Strong volume led domestic growth on the back of new product launches and product variants resulted in sales growth of 11.4% in Q4CY18 to | 2897.3 crore. Domestic sales increased 12%. Export revenue was flat due to weak performance in Bangladesh and UAE Operating profit declined 2.3% to | 599 crore while margins declined 290 bps to 20.7%, impacted by a sharp jump in other expenses (418 bps increases in other overheads to sales)...

Nestl's 4QCY18 nos show 4.8% decline in EBIDTA and 4.3% decline in PAT Change in Estimates | Target | Reco due to higher adspends on brand building and peaked out gross margins, we...

14 February 2018 Domestic sales grew by 12% YoY, driven by higher volumes. Export sales were flat YoY at INR1.9b due to lower exports to Bangladesh and the UAE. EBITDA however, shrank 360bp YoY to 21.2% due to a sharp increase in other expenses, largely on account of step-up in demand-generating activities, including on new products. PAT were up 12.8%, 23% and 27.5% YoY, respectively. Reported domestic sales grew 10.9% YoY, while exports increased 6.9% YoY. Gross margin expanded 260bp YoY to 59.4%, while the EBITDA margin improved 200bp YoY to 24.2%.

Nestle India Ltd Q3CY18 results Comment Revenue rose by 9.09% to Rs. 2921.99 Cr in Q3CY18 when compared to the previous quarter. Also, it grew by 16.85% when compared with Q3CY17.

Strong volume led domestic growth on the back of new product launches and product variants resulted in total sales growth of 16.9% in Q3CY18 to | 2939.4 crore. Domestic sales increased by 17.5%. Operating profit increased 22.8% to | 725.2 crore while margins saw an improvement of 118 bps to 24.7% mainly on the back of soft milk prices and sugar, resulting in 286 bps improvement in gross margins, partially offset by 150 bps increase in other expenses to sales...

26 October 2018 Domestic sales grew 17.5% YoY, while exports increased 7.9% YoY to INR1.7b. favorable commodity prices during the quarter. In its press release, NEST stated that it is now facing some headwinds from RM costs, crude-led inflation and currency depreciation. 150bp YoY to 24.6% of sales, led by higher marketing spends and an increase in fuel prices. During the quarter, NEST introduced Breakfast Cereals. Staff costs, however, declined 40bp YoY in the quarter. Other income grew 56% YoY to INR670m due to higher average liquidities and increased yields.

Nestle posted 14.5% YoY growth in domestic revenue across all its product categories in H1CY18 with a healthy volume growth of 9% YoY. Gross margins expanded by 460bps due to benign raw material prices. Higher other income (45% YoY rise) and lower depreciation charges (4% YoY/-1% QoQ) drove strong PAT growth. Recent entry into breakfast cereals and canned beverages will help leverage existing extensive distribution reach for a faster scale-up. Management stressed on innovation backed healthy products and cluster...

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...