Most analysts retained their ratings on Nestle India after the company posted a 5.2% rise in net profit to Rs 617.4 crore for the quarter ended September. The maker of Maggi instant noodles and KitKat chocolates reported a 9.6% rise in sales to Rs...
By ET Bureau | Updated:
BCCL
"Valuation at about 58 times for CY23 looks expensive and offers limited upside," said CLSA.
Mumbai: Most analysts retained their ratings on Nestle India after the company posted a 5.2% rise in net profit to Rs 617.4 crore for the quarter ended September.
The maker of Maggi instant noodles and KitKat chocolates reported a 9.6% rise in sales to Rs 3,864.97 crore. Shares of CLSA ended down 0.61% at Rs 19,258.40 on Wednesday.
Morgan Stanley has reiterated equal-weight recommendation on the stock.
"3Q earnings were ahead of our estimates, but missed consensus. Double-digit domestic top-line growth and recovery in out-of-home channels are key positives," said Morgan Stanley. The brokerage said high commodity inflation remains a headwind.
ICICI Securities and Antique Stock Broking maintained hold rating while UBS and Edelweiss retained their buy rating.
CLSA has cut earnings estimates for calendar year 2021 to 2023 by 2-4% on margin performance missing expectations and expectations of continued pressure on gross margin.
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"Valuation at about 58 times for CY23 looks expensive and offers limited upside," said CLSA.
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