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Buy Nestle India: target of Rs 19,055: Sharekhan

Sharekhan is bullish on Nestle India has recommended buy rating on the stock with a target price of Rs 19,055 in its research report dated February 26, 2021.

March 01, 2021 / 01:14 PM IST
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Sharekhan's research report on Nestle India

Nestle India (Nestle) maintained its thrust on achieving double-digit revenue growth by penetrating deep in rural markets (covered 89,288 villages), innovation (that contributes 4.3% of sales) and accelerating footprint through new channels. Revenues grew by 8.1%y-o-y in CY2020, driven by a 5.7% volume growth. Barring Q2, volume growth stood at 7-8% (value growth was at 10-11%) in all other quarters. OPM stood at 24% in CY2020. Though input prices are rising, efficient procurement and Project Shark are expected to keep OPM high y-o-y. The stock has corrected by ~15% from highs and is trading at 53x its CY2022E EPS. Strong return profile, growth prospects and cheery dividend payout make Nestle a good pick.


We maintain Buy with unchanged PT of Rs. 19,055.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Mar 1, 2021 01:14 pm

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