Apr 26, 2012, 12.22 PM IST | Source: Reuters

Muted profits, but Nestle India will recover - Nomura

INDIA-NESTLE-NOMURA:Muted profits, but Nestle India will recover - Nomura

Reuters Market Eye - *Shares in Nestle India fall 2 percent, a day after the company says net profit in the Jan-March quarter rose 7.8 percent from a year ago, disappointing investors.

* Nomura says Nestle's profits missed estimates, but adds input costs have started to ease and will help lift margins over then next couple of quarters.

* Nomura adds Nestle remains one of its key long-term picks in the sector, but maintains its "Neutral" rating, with target price at 4,345 rupees vs Nestle's 4,936 rupees closing price on Wednesday.

(Reporting by Manoj Dharra; Editing by Rafael Nam)


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