Neutral on Nestle India, target price Rs 18,300: Motilal Oswal

Motilal Oswal has neutral call on Nestle India Ltd. with a target price of Rs 18,300. The current market price of Nestle India Ltd. is Rs 16863.85.

Nestle India Ltd., incorporated in the year 1959, is a Large Cap company (having a market cap of Rs 163366.31 Crore) operating in FMCG sector.

Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 3640.47 Crore, up 5.12 % from last quarter Total Income of Rs 3463.18 Crore and up 8.09 % from last year same quarter Total Income of Rs 3368.12 Crore. Company reported net profit after tax of Rs 602.25 Crore in latest quarter.


Investment Rationale
Valuations at 59x CY22E EPS are expensive and offer limited upside from a oneyear perspective.

Promoter/FII Holdings
Promoters held 62.8 per cent stake in the company as of Dec 31, 2020, while FIIs held 12.8 per cent, DIIs 7.8 per cent and public and others 16.7 per cent.