Buy Nestle India; target of Rs 22,590: Sharekhan

Sharekhan is bullish on Nestle India has recommended buy rating on the stock with a target price of Rs 22,590 in its research report dated February 16, 2023.

Broker Research

February 17, 2023 / 16:08 IST

26 Aug, 2025 12:21

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Sharekhan's research report on Nestle India

Nestle India Limited’s (Nestle) revenue grew by 13.8% y-o-y to Rs. 4,256.8 crore; OPM stood almost flat at 22.9% and PAT grew by 12% y-o-y to Rs. 628.5 crore. Price hikes in small packs led to flat volumes in the domestic market (grew by ~8% in 9MCY2022). Management expects domestic volume growth to recover in the quarters ahead with resilient growth in the urban market and penetration-led growth in rural markets. The company plans for capex of Rs. 1,200 crore in CY2023 and Rs. 2,000 crore in CY2024, considering strong growth opportunities in the domestic market. Focus remains on expansion in rural markets, calibrated new product launches, and improved growth in core in the long run.

Outlook

The stock is currently trading at 64.4x and 54.7x its CY2023E and CY2024E earnings, respectively. We maintain our Buy recommendation on the stock with a revised PT of Rs. 22,590.

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