Sharekhan's research report on Nestle India
Nestle India’s Q1CY2021 performance was largely in-line with expectation with revenue growth of 9% to Rs. 3,610 crore and OPM expansion of 189 bps to 25.8%; PAT grew by 14.6% y-o-y to Rs. 602.6 crore. Domestic business maintained its double-digit growth momentum with 10.2% growth (driven by volume and mix growth of 10.7%). All key categories registered double-digit growth with improvement in out-of-home categories. We need to keenly monitor the impact of localised lockdown on sales in the coming months. Medium-term thrust remains on achieving double-digit revenue growth by penetrating deep into rural markets (covered 89,288 villages), innovation (that contributes 4.3% to sales), and accelerating footprint through new channels. We have broadly maintained our earnings estimates for CY2021 and CY2022.
Outlook
The stock has corrected by 10% from its high and is currently trading at 55.7x its CY2023E EPS. We maintain our Buy recommendation with an unchanged PT of Rs. 19,055.
For all recommendations report, 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
