Nestle India Q1 Review - Tepid Results; Commodity Cost Headwinds Emerging: 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.Nestle India Ltd. reported weaker-than-expected numbers on all fronts for Q1 FY25. Volume growth is likely to have been ~1% YoY, which continues the disappointing trend of the past two years, especially on Prepared Dishes, something we had highlighted in our annual report analysis last month.Given that a major domestic acquisition is unlikely, it is important that there is a step-up in innovation. Earlier this month, we had highlighted about the portfolio that Nestle has in other Emerging Markets in a detailed note, some of which could potentially come to India eventually. For the quarter, 30% of incremental growth in prepared dishes (albeit growth is likely to have been modest in Q1 FY25) coming from innovation is a positive.We remain constructive about the packaged foods growth opportunity in India and Nestle (along with Britannia Industries Ltd.) has been at the forefront in driving growth for the past decade. Nestle’s return on capital employed is also the best-of-breed. Nevertheless, expensive valuation of ~60 times FY26E EPS makes us maintain Accumulate rating on the stock..Click on the attachment to read the full report:.Nestle India Q1 Results Review - Weak Revenue Growth; Miss On All Fronts: Motilal Oswal.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 Q1 Review - Tepid Results; Commodity Cost Headwinds Emerging: Nirmal Bang

Unprecedented headwinds in coffee and cocoa, with prices at all-time highs and continuing to witness uptick, says the brokerage.

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Nestle India Q1 Review - Tepid Results; Commodity Cost Headwinds Emerging: Nirmal Bang

Unprecedented headwinds in coffee and cocoa, with prices at all-time highs and continuing to witness uptick, says the brokerage.

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