External broker reports(aggregated public sources), Prabhudas Lilladhar

Prabhudas Lilladhar

Prabhudas Lilladher is one of India's leading research based financial services organisation.  

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.

External broker reports(aggregated public sources)

Prabhudas Lilladher is one of India's leading research based financial services organisation.

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 attended the Nestle India analyst meet where the company has given cautiously optimistic outlook on growth, notwithstanding near-term demand pressures led by high inflation and urban distress.</li><li>NEST will focus on volume led growth with range margin margins as current levels seem optimal post 600bps expansion since 2016. NEST continues to innovate with rising share of NPD (6-6.5% of sales) and is looking at major gains in Maggi, Chocolates, Beverages and OOH consumption.</li><li>We expect growth rates to accelerate given capacity expansion (Rs55bn in four years) and benefit from JV with Dr Reddy’s in the medical nutrition business.</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 attended the Nestle India analyst meet where the company has given cautiously optimistic outlook on growth, notwithstanding near-term demand pressures led by high inflation and urban distress.NEST will focus on volume led growth with range margin margins as current levels seem optimal post 600bps expansion since 2016. NEST continues to innovate with rising share of NPD (6-6.5% of sales) and is looking at major gains in Maggi, Chocolates, Beverages and OOH consumption.We expect growth rates to accelerate given capacity expansion (Rs55bn in four years) and benefit from JV with Dr Reddy’s in the medical nutrition business.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 India (NEST IN) - Focus on Volume Led Growth Amidst Tepid Urban Demand