ICICI Direct has given Hold recommendation for Nestlé India with a target price of Rs. 20450 in its research report issued on Jul 29, 2021

ICICI Direct’s research report on Nestlé India

Nestlé is the largest food company in India with over Rs 13000 crore of sales. It is broadly present in infant & baby food products, noodles, chocolates & beverages categories. In the last five years, it has forayed into newer categories & launched more than 80 new products across categories. The company has eight manufacturing facilities. One new plant in Sanand, Gujarat is likely to get commissioned by the end of the year. Its major brands include Maggi, Nescafe, KitKat and Nestle Cerelac among others

Outlook

We roll over CY23 numbers given the company is undertaking Rs 2600 crore capex in the next three to four years We continue to maintain our HOLD rating on the stock We value the stock at Rs 20450, valuing the business at 65x CY23 earnings

 

 

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