Sharekhan has given Buy recommendation for Nestle India with a target price of Rs. 22,395 in its research report issued on Aug 25, 2021
Sharekhan’s research report on Nestle India
H1CY2021 numbers were good with revenues and PAT growing by 12% and 13%, respectively and OPM standing at 25%. It maintained its thrust on achieving double-digit revenue growth by penetrating deep in rural markets (covered 89,288 villages), innovation (that contributes 4.3% of sales) and accelerating footprint through new channels. Nestle is planning to reward its shareholders with a higher dividend in the coming years by transferring Rs. 837 crore from the general reserve to retained earnings.
We maintain a Buy on Nestle India with a revised price target of Rs. 22,395. Revenues and PAT are expected to clock a CAGR of 14% and 18% over CY2020-23.