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Buy Nestle India; target of Rs 19055: Sharekhan

Sharekhan is bullish on Nestle India has recommended buy rating on the stock with a target price of Rs 19055 in its research report dated February 16, 2021.

February 18, 2021 / 03:10 PM IST
 
 
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Sharekhan's research report on Nestle India


Nestle India’s (Nestle’s) revenues grew by 9.0% to Rs. 3,432.6 crore in Q4CY2020; domestic sales grew by 10.1% (export sales decreased by 7.7%). OPM expanded by 111bps to 22.6% (versus ours and street’s expectation of 23.6%). For CY2020, domestic sales grew by 8.5% with two-thirds of portfolio growing in double digits. OPM stood at 24%. Sustained product launches, likely improvement in out-of-home consumption and expansion in distribution network remain key growth drivers in the near to medium term.


Outlook


We have trimmed our earnings estimates for CY2021/22 by 2-3%. In view of long term growth prospects and cheery dividend payout (of 112% for CY2020), we maintain a Buy rating with an unchanged PT of Rs. 19,055.


For all recommendations report, click here


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Broker Research
first published: Feb 18, 2021 03:10 pm

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