Underweight on Nestle India with a target at Rs 5370: Morgan Stanley

Morgan Stanley maintains underweight rating on Nestle India post March quarter results with a target price of Rs 5370. The domestic FMCG business revenues decline was led by continuing impact of Maggi ban, said the MS note.

The global investment bank is of the view that the business was unable to absorb fixed costs with continuing sluggish revenue growth, but expect recovery in Maggi noodles.

It is of the view that the recovery process will not impact customer acceptance of other products. Going forward, market share trends for Maggi should improve further over next few quarters.