Nestle India Q4 Results Review - Sales Below Expectations Despite Weak Base: Nirmal Bang

Nirmal Bang Report

Nestle India Ltd.’s Q4 FY24 results were weaker than expectations on the sales front despite a relatively weaker base compared to preceding quarters. Even the domestic sales growth of 8.9% was led by price and mix as per the press release and not volumes. The management attributed this to a challenging environment.

Ebitda and profit after tax were nevertheless in line as gross margins and Ebitda margins surprised positively.

We remain constructive about the packaged food growth opportunity in India and Nestle (along with Britannia Industries Ltd.) has been at the forefront in driving growth for the past decade. Return on capital employed are also the best-of-breed.

Nevertheless, expensive valuation of ~70 times FY25E earnings per share and ~61 times FY26E EPS lead us to maintain 'Accumulate' rating on the stock.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.