Buy Nestle India, target price Rs 22590: Sharekhan by BNP Paribas

Synopsis

Promoters held 62.76 per cent stake in the company as of 31-Dec-2022, while FIIs owned 12.12 per cent, DIIs 9.0 per cent.

​Nestle IndiaETMarkets.com
Nestle India, incorporated in the year 1959, is a Large Cap company (having a market cap of Rs 182534.72 Crore) operating in FMCG sector.
Sharekhan by BNP Paribas has buy call on Nestle India with a target price of Rs 22590. The current market price of Nestle India is Rs 19008.95.

Nestle India, incorporated in the year 1959, is a Large Cap company (having a market cap of Rs 182534.72 Crore) operating in FMCG sector.

Nestle India key Products/Revenue Segments include Milk Products, Prepared Dishes & Cooking aids, Confectionery, Beverages (Powdered), Export Incentives, Other Operating Revenue for the year ending 31-Dec-2021.

Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 4286.34 Crore, down -7.26 % from last quarter Total Income of Rs 4621.64 Crore and up 13.80 % from last year same quarter Total Income of Rs 3766.65 Crore. Company has reported net profit after tax of Rs 628.06 Crore in latest quarter.

The company’s top management includes Mr.Suresh Narayanan, Mr.David S McDaniel, Mr.Matthias C Lohner, Mr.Rajya Vardhan Kanoria, Dr.Swati A Piramal, Ms.Rama Bijapurkar, Ms.Roopa Kudva, Mr.P R Ramesh. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 10 Crore shares outstanding.

Investment Rationale
Nestle’s strong positioning in the domestic food market, innovative product portfolio, and improving out-of-home consumption with a thrust on improving penetration in rural markets will help it drive consistent double-digit earnings growth in the long run. The company is supporting its consistent growth agenda by higher investments in capacity enhancement, strong brand support, and better R&D initiatives in the coming years.

The stock is currently trading at 64.4x and 54.7x itsCY2023E and CY2024E earnings, respectively.

Promoter/FII Holdings
Promoters held 62.76 per cent stake in the company as of 31-Dec-2022, while FIIs owned 12.12 per cent, DIIs 9.0 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
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