Nestle India Ltd. share price target

Nestl sustained double digit growth as all categories except Maggi posted double digit sales growth led by strong consumer traction and gradual opening up of the economy. NEST continues to gain across channels with MT growing in mid-twenties while E-Com is sustaining faster growth. NEST's has increased focus on rural growth by increasing village coverage by 33% through relevant/ rural centric products which will accelerate growth as rural and semi-urban markets are growing at 2-2.5x of urban and are contributing...

Company's strong portfolio of brands and well-spread distribution network should improve product penetration and continue to support performance. Hence, we reiterate our BUY rating on the stock with a revised TP of Rs. 19,720 based on 67x CY22E adj. EPS. Topline growth momentum continues Nestle India's Q2CY21 standalone revenue increased by 14.0% YoY to Rs. 3,477cr mainly due to continued momentum in domestic sales and also due to weaker base in Q2CY20. Export sales grew 17.7% YoY (remained flat QoQ) to Rs. 157cr. Strong...

However, in light of emerging RM headwinds (packaging material and edible oil) and to bake in muted Q2 we cut our EBITDA/PAT estimates for CY21E/22E by 9%/11% and 11%/12% respectively and introduce CY23E. Maintain HOLD with unchanged TP of Rs. 18,600 as we roll forward our multiple to CY23E EPS.

For the quarter ending June 2021, Net sales (including other operating income) of Nestle India has increased 13.97% to Rs 3,476.70 crore compared to quarter ending June 2020. Operating profit margin has slumped from 24.51% to 24.39%, leading to 13.44% rise in operating profit to Rs 848.00 crore. Raw material cost as a % of total sales (net of stock...

Capex on track; rural reach to get enhanced of sales. It is broadly present in infant & baby food products, noodles, chocolates & beverages categories. In the last five years, it has forayed into newer categories &...

We initiate coverage on Nestle with a BUY for a price target of Rs 20,944 (65.8x CY23 earnings) over the next 18-24 months representing a potential upside of 24.2% on the CMP of Rs 16,867. We have used the DCF method to value Nestle.

Nestle India (NEST) 1QCY21 reported in-line result driven by strong double digit growth momentum in domestic business (3rd consecutive quarter) while revenue from exports continues to decline. Key brands like Maggi noodles, Kitkat, Nescafe classic, Maggi Sauce, Milkmaid, Maggi Masala Magic grew by double digits during the quarter driven by higher in-home consumption. Revenue from e-commerce grew 66%YoY. Gross margin expanded for 3rd consecutive quarter however, management highlights inflation in the cost of raw material to be key challenge going forward. Dividend announcement of Rs 25/share is positive. We have marginally trimmed our other income estimates for...

Nestle India Q1 Results: Net Profit Up 15% on Higher Domestic Sales Nestle India's quarterly profit and revenue rose on the back of double-digit domestic sales growth in the quarter-ended March. Net profit of the maker of Maggi instant noodles and Nescafe coffeewhich follows the calendar year as its financial yearrose 15% over the preceding year to Rs 602.2 crore in the three months March. Total Sales increased by 8.9%. Domestic Sales increased by 10.2% driven by volume & mix and is broad based. Export Sales were lower by 12.9% due to lower exports to affiliates. Demand in...

However, in light of emerging RM headwinds (packaging material and commodities like palm oil), we tweak our estimates a shade resulting in a downgrade to HOLD from BUY earlier. However, we maintain a TP of Rs 18,600 as we continue to value the stock at 60x its CY22E EPS.

NEST delivered an in line set of 1QCY21 numbers, with overall sales growth of 8.6% (v/s our estimate of 8.5%) and domestic sales increasing in doubledigits (10.2%). While gross margin was in line, EBITDA and PAT were 5.2% and 3% ahead of our estimates, respectively. The management did call out sequential inflation in commodity costs, which may affect operating margin ahead. While longer term opportunities are attractive, valuations of 59x CY22E EPS are expensive. We maintain our Neutral rating....