Nestle India Ltd. share price target

Nestle India (Nestle) reported a 4% YoY revenue growth (est. 5%) in 3QFY25. Domestic sales grew 3% YoY, hurt by a slowdown in urban consumption and higher commodity prices.

Nestle’s Q2FY25 revenue growth was disappointing; it further de-accelerated to 1% YoY (vs 4% in Q1FY25) due to subdued consumer demand.

We remain optimistic about the company's long-term prospects. With an 11% upside potential from the CMP, we maintain our BUY rating on the stock.

We downgrade Nestlé India to REDUCE from Add with a 14.3% cut in TP to Rs2,400 amid sustained topline pressures.

Nestle India (Nestle) reported weak revenue growth of 1% YoY (est. 6%) in 2QFY25. Last eight-quarter average revenue growth was 10%. Domestic sales grew 1% YoY, impacted by muted demand and higher commodity prices.

Nestle India’s (Nestle’s) Q2FY2025 numbers were weak, missing estimates on all fronts. Muted revenue growth at 1.3% y-o-y along with 144 bps y-o-y decline in OPM and lower other income lead to 9.1% y-o-y decline in adjusted PAT.

Sales came in 4% below consensus while EBITDA was 10% lower due to margin being 152bps below expectations

We maintain our BUY rating on the stock.