Hold Nestle India, target price Rs 22000: ICICI Direct

ICICI Direct has hold call on Nestle India with a target price of Rs 22000. The current market price of Nestle India is Rs 19090.25.


Nestle India, incorporated in the year 1959, is a Large Cap company (having a market cap of Rs 189252.96 Crore) operating in FMCG sector.


Nestle India key Products/Revenue Segments include Milk Products, Prepared Dishes & Cooking aids, Confectionery, Beverages (Powdered), Export Incentives, Other Operating Revenue for the year ending 31-Dec-2021.

Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 4286.34 Crore, down -7.26 % from last quarter Total Income of Rs 4621.64 Crore and up 13.80 % from last year same quarter Total Income of Rs 3766.65 Crore. Company has reported net profit after tax of Rs 628.06 Crore in latest quarter.

The company’s top management includes Mr.Suresh Narayanan, Mr.David S McDaniel, Mr.Matthias C Lohner, Mr.Rajya Vardhan Kanoria, Dr.Swati A Piramal, Ms.Rama Bijapurkar, Ms.Roopa Kudva, Mr.P R Ramesh. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 10 Crore shares outstanding.

Investment Rationale
The brokerage estimates high single digit volume along with 200 bps operating margin expansion in next two years.

Promoter/FII Holdings
Promoters held 62.76 per cent stake in the company as of 31-Dec-2022, while FIIs owned 12.12 per cent, DIIs 9.0 per cent.