Numbers good, Nestle India stock should recover from here: Preeyam Tolia

Preeyam Tolia, Equity Research Analyst - FMCG & Retail, Axis Securities, says prima facie, the numbers look good. There are no one-offs of such kind where we are worried about. The Street also estimated a good set of numbers but not this kind of numbers. The stock should recover from here. Maybe because the stock has run up in the last two days, it should recover going ahead.

Your first take on the Nestle numbers? Rather a solid set?
Yes, the Nestle India numbers are pretty strong and have proved to be beyond our estimates, primarily led by the broad-based growth across the different categories. As the management has highlighted, it has delivered a double-digit growth across categories. However, the confectionery growth has been stronger than we expected. We are quite happy with the numbers.

Negative reaction on the counter. It saw a bit of a spike but now it is cooling off. Is there anything that you do not like in the numbers – be it the margin profile or just the valuations and the fact that the Street was expecting a good set?
Prima facie, the numbers look good. There are no one-offs of such kind where we are worried about. The Street also estimated a good set of numbers but not this kind of numbers. So, this is pretty good. I think the stock should recover from here. Maybe because the stock has run up in the last two days, it should recover going ahead.