Prabhudas Lilladher's research report on Nestle India
Nestlé 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 just ~20-22% of sales of Nestle.
We maintain Accumulate rating with a TP of Rs 19,501 on DCF basis (Rs19,717 earlier). Long term outlook is intact but expect back ended returns given rich valuations of 63.8xSept23 EPS.