INSUBCONTINENT EXCLUSIVE:
Emkay Global Financial Services has an accumulate call on Nestle India Ltd
with a target price of Rs 10100
The current market price of Nestle India Ltd
is Rs 9513.05 Time period given by analyst is year when Nestle India Ltd
price can reach defined target
Nestle India Ltd., incorporated in 1959, is a large-cap food processing company with a market cap of Rs 92052.42 crore.
Investment
rational by Emkay GlobalNestle reported a robust quarter with EBITDA and net profit growth of 35% and 40%, respectively, which was ahead of
Comparable sales grew by 13% to Rs27.5bn, in line with expectations
However, operating margin witnessed strong improvement of 440bps, led by lower input costs and cost savings
? Sales growth was driven by broad-based growth across categories and is indicative of near double-digit volume growth
Softer input prices and cost efficiencies will result in margin expansion and stronger earnings growth going ahead.
With the strong Q1CY18
performance, we increase our earnings estimates by 2-3%
Maintain ACCUMULATE with a revised TP of Rs10,100 (from Rs9,900).
