Buy Nestle; target of Rs 6770: Bonanza

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26 Aug, 2025 12:21

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Bonanza's reserach report on NestleNestle India Limited is an Indiabased subsidiary of Nestle S.A., Switzerland, engaged in the food business. The Company's food business incorporates product groups through milk products and nutrition, beverages, prepared dishes and cooking aids, chocolates and confectionery. The Company's portfolio of dairy products include Nestle EVERYDAY, Nestle A+ Milk, Nestle A+ SLIM Milk, Nestle SLIM Dahi and Nestle MILKMAID. Its beverages include Nescafe, Nescafe Classic, Nescafe Sunrise, Nescafe Cappuccino and Nescafe Gold. Its portfolio of prepared dishes and cooking aids products include MAGGI Masala Magic, MAGGI Bhuna Masala. Its portfolio of chocolates and confectionery products include Nestle KitKat, Nestle BarOne, Nestle Alpino, and Nestle Munch,among others.At CMP of Rs 6,235, the stock is trading at 49x of its FY16E EPS of Rs126 and 43x of its FY17E EPS of Rs 144. We expect NIL to attain lower revenue growth on back of eliminated revenues from Maggi in CY15 and hence we assign lower multiples of 47x from its highs of 55x last year. Hence we arrive at a target price of Rs 6,770 with FY17E EPS of Rs 144. We have initiated coverage on the stock with a BUY rating. Initiate with BUY; TP- Rs 6,770For all recommendations, 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.

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