Nestle India Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Nestl India (NIL) reported a mixed set of Q4CY15 numbers as net sales were below our expectation while EBITDA margins & PAT came...

Revenue growth was significantly below our and consensus estimates. Domestic sales fell by 24% yoy inspite of launch of Maggi noodles on 9th November. We believe that the decline was because of loss of shelf space by Maggi noodles to...

We recently attended Nestle India's analyst meet where the company discussed the re launch of Maggi and future growth strategies. The new CEO, Mr. Suresh Narayanan seemed much more forthcoming in connecting and discussing the future strategies with...

Revenue growth was below our estimates and significantly below consensus expectations as revenue of non-noodles categories declined by 10% We believe that the decline was because of absence of carrier-brand Maggi in the...

Quarter eclipsed by Maggi; Valuations in fair zone value Nestle India reported revenue of Rs17.4bn for the quarter ended Sep'15, a fall of 32% compared to same period last year. EBITDA and net profit came in at Rs2.9bn and Rs1.2bn, respectively, which were lower by 32% and 51%, respectively. While Maggi has been raison d'tre for the disappointing performance, we believe that excluding Maggi fiasco too, the quarter has been impacted due to overall sluggish macro environment. We expect Maggi to make a comeback over the next two years to reach its earlier revenue level. Based on expected EPS of Rs166.4, the stock is trading...

Nestl India's Q2CY15 results were below our and consensus estimates due to the Maggi controversyaffectingoverallbusinessgrowth.InQ2,netsalesdeclined20%yoyandEBITDA fell26%.Maggi,whichaccountedforRs25bninsalesinCY14,continuestobeabsentinthe...

Recently, various Indian state governments have accused Nestle of selling Maggi Noodles containingdangerouslyhighlevelsofleadandmonosodiumglutamate(MSG).Thishasled to revenue loss and erosion in Maggi's brand value. As more states move towards testing...

Maggi is synonymous to comfort food in India and has been a dominant brand in the instant noodles space for over 32 years, enjoying a market share of over 70%. Despite increased competition from other private labels and national entrants in the instant noodles space including ITC (Yipee), Nissin (Top Ramen), HUL (Knorr) and GSK Consumer (Foodles), Nestle has been able to maintain its dominant share. However, its dominance seems to be under threat, given the pessimism surrounding the brand and if Nestle India does not take appropriate brand building and reputation damage control exercise at the earliest....

Nestles 1QCY15 revenues grew by 8.4% YoY to Rs 25.2bn as the domestic business disappointed with a 7.6% YoY growth (4QCY14 : 11.3% YoY). Back of the envelope calculations suggest flat volumes (YoY) in the domestic business.