External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

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External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We believe Nestle has the potential for double-digit revenue growth in the medium term, unlike peers struggling with high single-digit growth, owing to several factors: (a) ramping up its rural distribution network, currently under-indexed, (b) focusing on substantial growth in its out-of-home channel, (c) prioritizing the salience of NPD and category creation efforts, (d) investing in capacity expansion (with a capex of INR 65bn over CY20-25) to align with long-term penetration-led volume growth objectives, (e) India’s prioritization as one of the top 10 markets despite contributing only 2% of global revenue</li><li>We also expect the EBITDA margin to expand c100bps from FY24-27 to 25%, despite being at a decadal high, owing to operational scale improvements, premiumization, and cost optimization initiatives</li><li>We upgrade Nestle to ADD from REDUCE with a TP of INR 2,750 (70x FY26 EPS) and recommend investors to accumulate the stock amidst any negative news flows.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We believe Nestle has the potential for double-digit revenue growth in the medium term, unlike peers struggling with high single-digit growth, owing to several factors: (a) ramping up its rural distribution network, currently under-indexed, (b) focusing on substantial growth in its out-of-home channel, (c) prioritizing the salience of NPD and category creation efforts, (d) investing in capacity expansion (with a capex of INR 65bn over CY20-25) to align with long-term penetration-led volume growth objectives, (e) India’s prioritization as one of the top 10 markets despite contributing only 2% of global revenueWe also expect the EBITDA margin to expand c100bps from FY24-27 to 25%, despite being at a decadal high, owing to operational scale improvements, premiumization, and cost optimization initiativesWe upgrade Nestle to ADD from REDUCE with a TP of INR 2,750 (70x FY26 EPS) and recommend investors to accumulate the stock amidst any negative news flows.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nestle: Best Proxy on Great Indian Consumption Story. Upgrade to ADD

Nestle India

Nestle: Best Proxy on Great Indian Consumption Story. Upgrade to ADD