Nestle India stock trades in green a day ahead of Q1CY25 results, Citi reiterates 'buy' with 16% upside

Over the past six months, the FMCG player's share price has gained around 3 percent.

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26 Aug, 2025 12:21

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Nestle India shares were trading in green on April 24 a day ahead of its Q1 earnings announcement. The stock is down one percent over the past four sessions, partially recovering losses due to reports regarding the sugar levels in Nestle's baby food. The FMCG major is expected to report a 8 percent growth in revenue on the back of price hikes and a strong rural distribution during the March quarter.

Nestle India is expected to report Rs 856-crore net profit on April 25 in Q1CY25, as per mean estimates of seven brokerage firms. The net profit number is expected to increase 22 percent on-year. The company follows a January-to-December calendar year.

The firm's stock has mostly shaken off the impact from reports stating that the FMCG major adds sugar and honey to its infant milk and cereal products in developing countries like India but not in the European markets.

After sliding more than 4 percent from April 18 to April 19, Nestle India shares have clawed back gains over last three sessions. The counter is trading around a percent lower from the closing price on April 16 before the scathing report was released.

At 11.30 am, Nestle India stock was quoting Rs 2,516, 0.6 percent higher compared to the previous session's closing price.

In a recent report, Public Eye, a Switzerland-based advocacy organization, accused Nestle of incorporating sucrose or honey into samples of Nido, a milk formula for infants aged one and above, and Cerelac, a widely popular cereal for children aged between six months and two years.

This revelation follows testing conducted by a Belgian laboratory on Nestle's baby food products distributed in Asia, Africa, and Latin America.

However, Citi maintained its buy call on Nestle India with a target price of Rs 2,900 apiece, implying a target price of around 16 percent. The international brokerage added that the company's long-term outlook remains intact, and its dominant brands will continue to lead growth.

Additionally, the management's focus on distribution and expansion along with entering into new categories will help support the company's future earnings.

Over the past six months, the FMCG player's share price has gained around 3 percent. In comparison, the Nifty 50 index has gained around 17.5 percent during the same time period.