Hold Nestle India; target of Rs 2700: Anand Rathi

Anand Rathi recommended hold rating on Nestle India with a target price of Rs 2700 in its research report dated February 03, 2024.

Broker Research

February 04, 2025 / 11:23 IST

Hold

26 Aug, 2025 12:21

Volume

Todays L/H

Anand Rathi's research report on Nestle India

The company's revenue stood at Rs. 47,797 Millions in Dec 24 quarter, showing a 3.9% increase compared to Rs. 46,004 Millions in the corresponding quarter of the previous year whereas there was a de growth of 6.4% on QoQ basis. In 9M FY25 basis, the company reported a revenue of Rs. 146,977 Millions a growth of 2.8% on annual basis. EBITDA and Profit After Tax (PAT) stood at Rs. 10,849 million and Rs. 6,880 million, respectively. While EBITDA remained stable, PAT saw a 4.9% increase. For 9M FY25, the company reported an EBITDA of Rs. 33,670 million, maintaining the same level as the previous year, while PAT reached Rs. 23,341 million, reflecting a YoY growth of 3.1%. E-commerce maintained its strong momentum, achieving high double-digit growth and accounting for 9.1% of domestic sales. Products introduced since 2015 now contribute approximately 7% to total sales. Growth was driven by rapid commerce, consumer acquisition, festive promotions, and premiumization, with KITKAT, NESCAFÉ, and MAGGI contributing significantly. In Organized Trade the retail business sustained its growth trajectory, driven by MAGGI noodles, beverages, and overall premiumization. Out of Home (OOH) - Among the fastest-growing businesses, driven by ongoing portfolio transformation, premiumization, strong customer acquisition, and expansion beyond metros and mega cities. Strengthened presence with over 940 Nestlé Retail One Kiosks across colleges, hospitals, and tourist destinations. Export - Achieved robust growth in key international markets, driven by nutrition, instant tea, and confectionery, while coffee exports maintained strong double-digit growth. NESTLÉ MUNCH, NESCAFÉ SUNRISE, and MAGGI Masala-Ae-Magic were introduced to new markets in the United States and the United Arab Emirates.

Outlook

The company had a decent quarter in challenging environment with 3 out of 4 product groups delivering healthy growth led by a combination of pricing and volume. We recommend HOLD rating on the stock with a target price of ₹2,700 per share.

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