Brokers' picks: Nestle to ‘Outperform’, says CLSA
Nestle has underperformed FMCG peers by 40ppt in the past two years due to internal issues.
By ET Bureau | Updated:
Target: Rs 5,850
Current Price: Rs 5,285
Nestle has underperformed FMCG peers by 40ppt in the past two years due to internal issues like capacity constraints, portfolio rationalisation and aggressive price hikes.
Nestle India is starting to see improving sales while it remains less dependant on imports than competitors such as Hindustan Unilever.
Nestle India’s shares have also underperformed consumer good rivals, according to CLSA
“We see earnings acceleration ahead which should drive the stock performance” CLSA said.
Current Price: Rs 5,285
Nestle has underperformed FMCG peers by 40ppt in the past two years due to internal issues like capacity constraints, portfolio rationalisation and aggressive price hikes.
Nestle India is starting to see improving sales while it remains less dependant on imports than competitors such as Hindustan Unilever.
Nestle India’s shares have also underperformed consumer good rivals, according to CLSA
“We see earnings acceleration ahead which should drive the stock performance” CLSA said.
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