Moneycontrol
Feb 15, 2018 10:11 AM IST | Source: Moneycontrol.com

Nestle India rises 5% on strong Q4 numbers; Credit Suisse maintains outperform

Revenue of the company was up 14.8 percent at Rs 2,601.5 crore versus Rs 2,266.2 crore.

 
 
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Shares of Nestle India rose more than 5 percent intraday Thursday on the back of strong fourth quarter results.

The company's Q4 net profit was up 59.6 percent at Rs 311.8 crore versus Rs 195.4 crore in a year ago period.

Revenue of the company was up 14.8 percent at Rs 2,601.5 crore versus Rs 2,266.2 crore.

The operating profit (EBITDA) was up 37.3 percent at Rs 533.5 crore and margin rose 340 bps at 20.5 percent.

Its net sales during the quarter under review were up 10.91 per cent to Rs 2,589.64 crore, as against Rs 2,334.78 crore.

The board of directors recommended final dividend for the year 2017 of Rs 23 per equity shares of Rs 10 each.

Brokerage: Goldman Sachs | Rating: Sell | Target: Raised to Rs 5,614 from Rs 5,485

Broking House Goldman Sachs has maintained sell rating on the stock and raised target price to Rs 5,614 from Rs 5,485 per share.

The company's Q4CY17 revenue and EBITDA are above estimates and its domestic sales growth driven by higher volume growth and realisations, it added.

According to firm, the gross margin ahead of estimates driven by better product mix and remained sell on expensive valuations.

Brokerage: Credit Suisse | Rating: Outperform | Target: Raised to Rs 9,000 from Rs 8,700

Credit Suisse has maintained outperform rating on the stock and raised target price to Rs 9,000 from Rs 8,700.

In Q4CY17 the massive beat reaffirms view that the turnaround is gathering the momentum. The revenue growth driven by volumes and recorded fastest growth among the peers.

The firm expects more tailwinds in CY18 as prices of key inputs are coming off and GST rate cuts also add more tailwinds for CY18, it said.

At 10:00 hrs Nestle India was quoting at Rs 7,539.95, up Rs 279.85, or 3.85 percent on the BSE.

Posted by Rakesh Patil
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