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 April 20, 2021.
April 22, 2021 / 03:29 PM IST
Sharekhan's research report on Nestle India
Nestle India’s Q1CY2021 performance was largely in-line with expectation with revenue growth of 9% to Rs. 3,610 crore and OPM expansion of 189 bps to 25.8%; PAT grew by 14.6% y-o-y to Rs. 602.6 crore. Domestic business maintained its double-digit growth momentum with 10.2% growth (driven by volume and mix growth of 10.7%). All key categories registered double-digit growth with improvement in out-of-home categories. We need to keenly monitor the impact of localised lockdown on sales in the coming months. Medium-term thrust remains on achieving double-digit revenue growth by penetrating deep into rural markets (covered 89,288 villages), innovation (that contributes 4.3% to sales), and accelerating footprint through new channels. We have broadly maintained our earnings estimates for CY2021 and CY2022.
The stock has corrected by 10% from its high and is currently trading at 55.7x its CY2023E EPS. We maintain our Buy recommendation with an 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 moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.