Nestle India Q4 Results Review - Robust Performance In Challenging Environment: Prabhudas Lilladher

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..Prabhudas Lilladher Report.We tweak CY24/25 earnings per share estimates of Nestle India Ltd. by -0.3%/-1.6% as we factor in higher margins but slightly slower growth rate in prepared dishes segment following rising competition from regional and smaller players in Instant Noodles segment. Q4 FY23 sales missed estimates as expected pick up did not materialise in festival season (despite Diwali being in Q4 CY23). Nestle India continues to report broad based growth across segments, markets (metros, tier-I-VI cities and rural markets) and channels (modern trade, out-of-home and e-commerce). Expansion plans are on track with Rs 13.7 billion capex in CY23 and land allotment for 10th unit in Odisha..Long term drivers remain intact, led by- sustained expansion in rural reach (~20-25% of sales),healthy innovation pipeline (Maggi Professional’s plant based range in Q4 FY23, Masala Millet, KitKat premium portfolio in Q3 FY23), huge scope of growth in coffee, RTD and Chocolates and higher growth in channels like e-Com and MT andstrong traction in pet care segment..We believe most of the gains from soft raw material has been derived and incremental margin expansion will come at a tepid pace as shortfall in production is likely to keep prices of edible oils, coffee, sugar, spices and wheat firm in the near to medium term. We factor in Ebitda margin expansion of 50bps over CY23- 25 and estimate 10.6% profit after tax compound annual growth rate. We remain constructive in long term, however expect back ended returns given rich valuations of 64.8 times CY25 EPS. Maintain ‘Accumulate’..Click on the attachment to read the full report:.Nestle India Q4 Results Review - Steady Performance; But Valuations Expensive: 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 Q4 Results Review - Robust Performance In Challenging Environment: Prabhudas Lilladher

Strong growth across all categories with beverage being fastest growing

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Nestle India Q4 Results Review - Robust Performance In Challenging Environment: Prabhudas Lilladher

Strong growth across all categories with beverage being fastest growing

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