Nestle India Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Nestl India (NIL) reported muted Q2CY16 results with net sales and earnings coming in lower than our estimates. Net sales increased 16.7% YoY to | 2256.1 crore (I-direct estimate: | 2676.8 crore). Domestic & export sales grew YoY by 17.5% & 7%, respectively. Maggi noodles has consolidated its market leadership position with 57% market share after its reintroduction in November 2015 EBITDA margin improved 47 bps to 19.7% (I-direct estimate: 19.5%)....

Its Management stated that Maggi has regained market leadership in instant noodles segment with market share of 57% after its reintroduction in November 2015, which is still far below the peak of ~80% market share it used to enjoy in instant noodles segment before the crisis. The Company has launched 25 new products during last two months to garner growth opportunities across categories including Greek yogurt brand Grekyo,...

ICICI Securities Ltd | Retail Equity Research Brushing aside overhang of a tumultuous CY15, Nestl India (NIL) began CY16 on a firm footing towards recovery as net sales declined...

While quarterly numbers can be volatile and Maggi sales are likely to have beaten estimates but it can now be ascertained that Maggi relaunch has been successful. Gross margins fell vs. Q1CY15/Q4CY15 due to rise in input prices...

Backed by enthusiastic response to re-launch of Maggi, Nestl India's 1QCY16 results were ahead of our expectations. While its net sales fell 8.4% to Rs23bn, EBITDA and net profit came in at Rs5.1bn and Rs2.6bn. Nestl India's domestic sales and export sales fell by 8.7% and 4.8% to Rs21.3bn and Rs1.7bn, respectively. We expected Nestl to post revenue and earnings CAGR of 19% and 16%, respectively through CY15-17E. However, at 38.4x CY17E earnings, as we believe that valuations are stretched at current levels, we revise our recommendation on the stock from...

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...

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...

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...

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...