Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Analyst Meet Update - Nestlé India (Hold): Focus on product innovation, expanding rural reach - ICICI Direct

Posted On: 2021-02-28 23:12:14 (Time Zone: Arizona, USA)

We attended the Nestlé India Analyst Meet to get an insight on the CY20 operational performance. The management also elaborated on its strategy on new launches, rural distribution expansion & aggressive capex plan for the future. Nestlé registered volume growth of 6% in CY20 aided by strong growth in Maggi Noodles (~20% in Q4CY20) & KitKat (>20% in H2CY20). Some key challenges faced by the company during pandemic were supply constraints in noodles category in Q2CY20 & demand contraction from out of home channels in beverage segment. However, the management emphasised the strong traction in multi-pack noodles in rural regions in H2CY20 & strong growth in retail segment in coffee (>11% in CY20). One of the important highlight of the management commentary was continuance of its thrust of new launches in future as well. The company has launched 80 new products in last five years with 75% success rate and it has 40-50 innovation projects in the pipeline. NIL is increasing its rural presence since last five years from access to 1000 villages in 2016 to ~90000 villages in 2019. It aims to further increase its rural presence to 1.2 lakh villages by 2024. We believe the focus on innovation, increasing its reach and expanding capacity would cover both facets of creating demand and improving availability of its products.

Valuation & Outlook

With the clear strategy to focus on new product innovation, expanding rural reach and adding capacities, the company is expected to continue to grow at a sustainable pace for an extended period of time. Most of NIL's brands are targeting the young & aspirational class. It would be able to reap the benefits of a demographics led consumption boom. We maintain our target price of Rs. 18000 and HOLD recommendation (unchanged) on the stock.

For details, click on the link below:

Shares of NESTLE INDIA LTD. was last trading in BSE at Rs.16097.7 as compared to the previous close of Rs. 16114.35. The total number of shares traded during the day was 13733 in over 4290 trades.

The stock hit an intraday high of Rs. 16287.2 and intraday low of 16010. The net turnover during the day was Rs. 221346983.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Nestle India 1QCY21 results - Views by Himanshu Nayyar, Lead Analyst - Institutional Equities, YES SECURITIES

ICICI Prudential Life Insurance - Q4FY21 Result Update - YES Securities

Power: Sector Thematic - Reforms essential for renaissance - HDFC Securities

ACC 1QCY21 Results Review Report - Strong margins! - HDFC Securities

ICICI Prudential Life 4QFY21 Results Review Report - Strong micro; challenging macro - HDFC Securities

ACC Ltd - Q1CY21 Result Update - YES Securities

ICICI Prudential Life Insurance - Business momentum upwards; valuations remain attractive - ICICI Securities

Multiplex - Business disruption again - learnings and better cash position to help - ICICI Securities

ACC - Strong show led by lower costs - ICICI Securities

Brookfield India REIT - Building a strong edifice - ICICI Securities

Q4FY21 Result Preview - Oil & Gas - ICICI Direct

Q1CY21 Result Update - ACC Ltd - ICICI Direct

ACC Q1CY21 Results - Views by YES SECURITIES

Comments on Rupee from industry experts - April 19, 2021

Autos & Logistics 4QFY21 Results Preview - HDFC Securities

ADD on Mindtree - Gaining momentum - HDFC Securities

ICICI Lombard 4QFY21 Result Review - HDFC Securities

Mindtree - Q4FY21 Result Update - YES Securities

ICICI Lombard - Q4FY21 Result Update - YES Securities

HDFC Bank - Q4FY21 Result Update - YES Securities

Mindtree - Subtle downgrade in outlook! - ICICI Securities

SBI Cards and Payment Services - Play on monetisable payments growth - ICICI Securities

ICICI Lombard General Insurance Company - Cyclical recovery can protract; fundamentals remain intact - ICICI Securities

HDFC Bank - Resilience and consistency displayed to its core - ICICI Securities

Home First Finance Company - Tech-led affordable housing play at affordable valuations - ICICI Securities

Q4FY21 Result Update - Wipro Ltd - ICICI Direct

ICICI Direct - Covid Recovery Pulse - E-Way bill generation ends March 2021 on strong note...

Derivatives Strategy - Positional Future - ICICI Direct

Gladiator Stocks - Escorts - ICICI Direct

Q4FY21 Company Update - Tata Metaliks - ICICI Direct

Q4FY21 Result Update - MindTree Ltd - ICICI Direct

Q4FY21 Result Update - HDFC Bank - ICICI Direct

ICICI Direct Derivatives Weekly View (April 16): Sustainability above 14700 may trigger fresh uptrend...

Market Outlook - Technical - By Dharmesh Shah, Head - Technical, ICICIdirect

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research, on Monsoon outlook

ADD on Wipro - Improving growth visibility - HDFC Securities

Building Materials 4QFY21 Results Preview - Strong demand to support robust margin - HDFC Securities

Consumer Discretionary 4QFY21 Results Preview - Bargains few and far between - HDFC Securities

Consumer Durables 4QFY21 Results Preview - HDFC Securities

Wipro - Q4FY21 Result Update - YES Securities

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research, on March 2021 Monthly Trade Balance

Wipro - Q4FY21 Result Update - Lofty multiples leave limited margin of safety - ICICI Securities

FMCG & Alco Bev 4QFY21 Results Preview - HDFC Securities

Maintain BUY on Infosys - Q4FY21 Results Review - Buy the dip - HDFC Securities

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research, on March 2021 WPI Data released today

Non-leveraged financials 4QFY21 Results Preview - HDFC Securities

Infosys - A reality check! - ICICI Securities

Infosys - Q4FY21 Result Update - YES Securities

Polymer price tracker - PVC prices continue to rise - April 15, 2021 - ICICI Securities

Bharti Airtel - Restructuring aimed at digital biz, AGR-tax efficiency - ICICI Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020