Accumulate Nestle; target of Rs 7247: KR Choksey

KR Choksey is bullish on Nestle has recommended Accumulate rating on the stock with a target price of Rs 7247 in its research report dated July 26, 2017.

July 31, 2017 / 16:57 IST

26 Aug, 2025 12:21

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KR Choksey's research report on Nestle
Nestle India Ltd posted its Q2CY17 results which were below our expectation, we expected growth of 12.8% while the reported growth remained around 7.3% yoy, also qoq growth de-grew by 4.1% vis-à-vis our growth expectation of 0.8%. Net revenue for Q2CY17 reported was around INR 24847.3Mn. EBIDTA for Q2CY17 stood at INR 4666.3Mn with margins at 18.8% which was an decrease of 205bps yoy and 148bps qoq. PAT after exceptional item for Q2CY17 stood at INR 2634.3 Mn and PAT margin remained at 10.6% which was an increase of 23bps yoy and decrease of 123bps qoq.

Outlook

With optimistic approach towards Nestle we foresee revenue growth of 10-12% in CY17E and CY18E and EBIDTA and PAT margins to be in range of 21-22% and 12.5%-14%, respectively. We recommend a ‘ACCUMULATE’ rating on the stock with a target price of INR 7247, giving an upside potential of 7.4%.

For all recommendations report, click here

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