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