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Buy Nestle India: target of Rs 20435: Sharekhan

Sharekhan is bullish on Nestle India has recommended buy rating on the stock with a target price of Rs 20435 in its research report dated July 28, 2021.

July 29, 2021 / 04:41 PM IST
 
 
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Sharekhan's research report on Nestle India


Nestle India’s Q2CY2021 performance was mixed with revenues growing ~14%, while OPM was flat at 24.4% (lagging ours as well as the street’s expectation of 25%). Domestic business maintained double-digit growth momentum at 13.7%, across all key categories seeing an improvement in sales. The company will transfer Rs. 837.4 crore banked in its general reserve to retain earnings with effect from January 1, 2022 that can be utilised for higher payouts to shareholders in CY2022.


Outlook


Stock trades at 59.3/50.7x its CY2022/23E earnings. We maintain a Buy with a revised price target of Rs. 20,435.


For all recommendations report, click here

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first published: Jul 29, 2021 04:39 pm
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