I-Sec maintains Hold on Nestle India, raises target price to Rs 2,350

ICICI Securities has maintained its Hold call on Nestle India with a revised target price of Rs 2,350 (Rs 2,300 earlier). The current market price of Nestle India is Rs 2391.8. Nestle India, incorporated in 1959, is a Large Cap company with a market cap of Rs 232699.33 crore, operating in the FMCG sector.

Nestle India's key products/revenue segments include Milk Products, Prepared Dishes & Cooking aids, Confectionery, Beverages (Powdered), Export Incentives, Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 5512.32 crore, up 15.22% from last quarter Total Income of Rs 4784.17 crore and down -45.74% from last year same quarter Total Income of Rs 10158.56 crore. The company has reported net profit after tax of Rs 885.88 crore in the latest quarter.

The company's top management includes Mr.Suresh Narayanan, Mr.Suneeta Reddy, Mr.Alpana Parida, Ms.Anjali Bansal, Mr.P R Ramesh, Mr.Satish Srinivasan, Mr.Svetlana Boldina, Mr.Suresh Narayanan, Mr.Sidharth Kumar Birla, Mr.Suneeta Reddy, Mr.Alpana Parida, Ms.Anjali Bansal, Mr.P R Ramesh, Mr.Satish Srinivasan, Mr.Svetlana Boldina, Mr.Sidharth Kumar Birla. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 96 crore shares outstanding.

Investment Rationale
ICICI Securities marginally tweaked its estimates, modelling revenue / EBITDA / PAT CAGR of 11% / 14% / 17% over FY25-26E. The brokerage maintains HOLD with a DCF-based revised target price of Rs 2,350 (vs Rs 2,300). An upside risk is faster-than-anticipated recovery in demand environment. The downside risk is higher-than-expected inflation in key raw material prices.

Promoter/FII Holdings
Promoters held 62.76 per cent stake in the company as of 31-Mar-2025, while FIIs owned 10.02 per cent, DIIs 11.21 per cent.