Hold Nestlé India; target of Rs 19050: ICICI Direct

ICICI Direct's research report on Nestlé India

Nestlé India (NIL) is the largest food company in India with over Rs 13000 crore of sales. It is broadly present in infant & baby food products, noodles, chocolates & beverage categories. In the last five years, the company has forayed into newer categories and launched more than 100 new products. • The company has nine manufacturing facilities including the newly commissioned plant in Sanand, Gujarat. Its major brands include Maggi, Nescafe, KitKat, Cerelac among others.

Outlook

We slightly cut our estimates due to incessant commodity inflation, which is adversely impacting margins despite price hikes • We continue to maintain our HOLD rating on the stock. We value the stock at Rs 19050, valuing the business at 65x FY24 earnings.

For all recommendations report, click here