Hold Nestle India, target price Rs 23000: ICICI Direct

ICICI Direct has hold call on Nestle India with a target price of Rs 23000. The current market price of Nestle India is Rs 21108.1. Time period given by analyst is a year when Nestle India Ltd. price can reach defined target.

Nestle India, incorporated in the year 1959, is a Large Cap company (having a market cap of Rs 203041.37 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-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Standalone Total Income of Rs 4864.22 Crore, up 13.48 % from last quarter Total Income of Rs 4286.34 Crore and up 21.54 % from last year same quarter Total Income of Rs 4002.14 Crore. Company has reported net profit after tax of Rs 736.64 Crore in latest quarter.

The company’s top management includes Mr.Suresh Narayanan, Mrs.Swati A Piramal, Mr.Rajya Vardhan Kanoria, Mr.David S McDaniel, Mr.P R Ramesh, Mr.Matthias C Lohner, Ms.Anjali Bansal, Mr.Alpana Parida. Company has B S R & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 10 Crore shares outstanding.

Investment Rationale
Palm oil, crude & wheat prices have declined significantly from their peak.Milk & coffee prices have remained elevated & would continue to remainfirm in CY23. However, the brokerage believes gross margin has bottomed out in CY22.

Promoter/FII Holdings
Promoters held 62.76 per cent stake in the company as of 31-Mar-2023, while FIIs owned 12.06 per cent, DIIs 9.12 per cent.