Accumulate Nestle India; target of Rs 24,300: KR Choksey

KR Choksey recommended accumulate rating on Nestle India with a target price of Rs 24,300 in its research report dated August 08 2023.

Broker Research

August 10, 2023 / 17:36 IST

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KR Choksey's research report on Nestle India

Q2CY23 revenue grew by 15.1% YoY to INR 46,585 mn (-3.6% QoQ). For H1CY23, revenue grew by 18.0% YoY to INR 94,891 mn. • EBITDA for the quarter was INR 10,555 mn, which was a growth of 27.1% YoY but a decline of 4.6% QoQ. For H1CY23, EBITDA grew by 23.5% YoY to INR 21,623 mn. EBITDA margin expanded by 213 bps YoY but contracted by 25 bps QoQ for the quarter to 22.7%. For H1CY23, the EBITDA margin expanded by 100 bps YoY to 22.8%. PAT for Q2CY23 was INR 6,983 mn (+36.9% YoY/ -5.2% QoQ). PAT for H1CY23 grew by 30.3% YoY to INR 14,350 mn.

Outlook

We apply P/E of 66.0x (63.0x earlier) on CY24E EPS of INR 368.2 and arrive at a target price of INR 24,300 per share (INR 23,000 earlier) with an upside potential of 6.6% from the CMP. Accordingly, we maintain our “ACCUMULATE” recommendation on the shares of Nestle India.

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