"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.
Geojit's research report on Nestle India
Nestle India Ltd., a subsidiary of Nestle S.A., is a food processing company, primarily into manufacturing of milk products and other food products such as beverages and cereals. In Q2CY21, Nestle India’s standalone revenue grew 14.0% YoY to Rs. 3,477cr driven by volume and product mix. Key products posted double-digit growth on the back of improved in-house consumption. EBITDA rose 13.4% YoY to Rs. 848cr despite margin dropping 10bps YoY to 24.4% primarily due to increase in fuel prices. PAT improved 10.7% YoY, partly impacted by higher interest and taxes. Company’s strong portfolio of brands and well-spread distribution network should improve product penetration and continue to support performance.
Outlook
Hence, we reiterate our BUY rating on the stock with a revised TP of Rs. 19,720 based on 67x CY22E adj. EPS.
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.
Read More