Buy Nestle India; target Rs 5083: Firstcall Research
Firstcall Research is bullish on Nestle India. The research firm has recommended to buy the stock with target price of Rs 5083 in its report dated November 05, 2011.
November 24, 2011 / 15:31 IST
Firstcall Research is bullish on Nestle India. The research firm has recommended to buy the stock with target price of Rs 5083 in its report dated November 05, 2011.
"Nestle India has posted a net profit marginal rise of 19.49% for the quarter ended Sep 2011. During the quarter, net profit Rs 2611.50 million for the quarter ended Sep 30, 2011 as compared to Rs 2185.60 million for the quarter ended Sep 30, 2010 representing rise of 19.49%. Net Sales is surged by 19.98% to Rs.19692.70 million from Rs.16414.00 million same quarter last year. Total income has increased from Rs 16468.00 million for the quarter ended Sep 30, 2010 to Rs.19751.90 million for the quarter ended Sep 30, 2011, representing increase of 19.94%. The EPS of the company is stood at Rs.27.08 for the quarter ended Sep.""At the current market price of Rs 4498.65, the stock is trading at 44.31 x CY11E and 37.67 x CY12E respectively. Earning per share (EPS) of the company for the earnings for CY11E and CY12E is seen at Rs.101.52 and Rs.119.42 respectively.""Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 21% over 2009 to 2012E respectively. On the basis of EV/EBITDA, the stock trades at 27.93 x for CY11E and 23.89 x for CY12E. Price to Book Value of the stock is expected to be at 23.65 x and 14.53 x respectively for CY11E and CY12E.""We expect that the company will keep its growth story in the coming quarters also. We recommend
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