Edelweiss' research report on Nestle
Towards double digit growth (volume led), it is strengthening positioning of existing brands, enhancing penetration and is in quest of constant innovation and renovation (43 launches over Jan 2016-May 2017). GST transition has been smooth with sales and billing starting right from Day 1. Going ahead, Nestle will emerge one of the key beneficiaries of the pickup in urban demand (~75% salience). Maintain ‘HOLD’.
Outlook
we raise CY18E PE multiple to 45x (42x earlier) and arrive at TP of INR7,039 (earlier INR6,902). At CMP, the stock is trading at 42.2x CY18E. Maintain ‘HOLD/SP’.
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