Nestle India Ltd. share price target

Sales growth remains subdued: Net sales rose 10.5% YoY to INR27.4b (est. of INR27.7b). Adjusted for GST accounting, sales growth was 13.4%, according to NEST's press release. Growth momentum witnessed in 4QCY17 (15.6%...

Nestle reported a robust quarter with EBITDA and net profit growth of 35% and 40%, respectively, which was ahead of our expectations by 7%. Comparable sales grew by 13% to Rs27.5bn, in line with expectations. However, operating margin witnessed strong improvement of 440bps, led by lower input costs and cost savings....

Nestle India's recovery is gaining momentum, with recent growth outperforming peers, driven by new CEO's strategy to focus on volume-led growth, drive a faster pace of innovation and expand distribution. With a revitalised core portfolio and increased focus on growth, we believe that Nestle's...

Increased Earnings Visibility Warrants a Rating Upgrade Nestle India has posted an impressive set of numbers for 4QCY17. Its reported net sales grew by 15.6% YoY to Rs25.9bn with domestic business growing by 15.8% YoY and exports by 12.7% YoY. EBITDA surged by 28.3% YoY to Rs6.1bn, aided by lower input cost and other cost-rationalisation measures. While reported net profit increased by 60% YoY to Rs3.1bn, adjusted net profit excluding provisioning for contingencies grew by 37.6% YoY to Rs3.9bn. We expect Nestle to report revenue and earnings CAGR of 13.9% and 16.8%, respectively through CY17-19E. Based on expected adjusted EPS of Rs191, the stock currently trades at 39.7x CY19E...

Sales for the quarter were up 10.9% YoY to | 2589.6 crore (Idirect estimate: | 2717.2 crore) led by 10.8% domestic sales growth. However, on a comparable basis, domestic sales witnessed growth of 18.1% mainly on the back of volume growth...

Reported net sales increased 15.6% YoY to INR25.9b in 4QCY17. The company's press release states that domestic comparable sales growth adjusted for GST was 18.1% YoY. Exports grew 12.7% YoY to INR1.9b.Gross margin expanded 160bp YoY to 58.7%. Other expenses were down sharply by 240bp YoY. Staff costs too fell 10bp YoY to 10.1%. EBITDA margin,thus, expanded 410bp YoY to 24.4% in 4QCY17. EBITDA grew 38.7% YoY toINR6.3b (est. of INR5.3b). PAT rose 50.2% YoY to INR4.2b (est. of INR3.3b).CY17 highlights: Net sales were up 9.7% YoY to INR99.5b. EBITDA margin expanded marginally by 10bp YoY to 21.7%. EBITDA grew 10.1% YoY toINR21.6b. PAT rose 13.2% YoY to INR13.5b

Nestle India Ltd Q3CY17 results comment Revenue rose by 4.78% to Rs. 2500.67 Cr in Q3CY17 when compared to the previous quarter. Also, it rose by 7.55% when compared with Q3CY16.

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...