Nestle India Annual Report Analysis - Building Blocks In Place; Ad-Spends Witness Relative Uptick: Nirmal Bang

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.There is no material change to our FY25E and FY26E EPS estimates:The long-term narrative for revenue and earnings growth for Nestle India Ltd. is highly appealing. Companies such as Nestle India with a strong pedigree and distribution strength are expected to benefit significantly from the immense growth prospects of the Packaged Foods segment in India,Further, the successful implementation of the company’s volume-led growth strategy during a large part of Mr.Suresh Narayanan’s tenure provides confidence in execution as well,Significant distribution expansion along with an unprecedented level of capex (~Rs 75 billion during 2020-2025) also indicates the management’s confidence about future growth prospects.However, valuation at ~59 times FY26E earnings per share is expensive and does not offer any significant upside from a one-year perspective..We value Nestle at 60 times FY26E EPS to arrive at our target price of Rs 2,550. We maintain our “Accumulate” stance on Nestle..Click on the attachment to read the full report:.TCS, Infosys Annual Report Analysis - Employee Pyramid Weakens; AI, ESG Gain Prominence: ICICI Securities.DISCLAIMERThis 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."

Nestle India Annual Report Analysis - Building Blocks In Place; Ad-Spends Witness Relative Uptick: Nirmal Bang