Nestle India Q3 Results Review - Input Cost Pressures Have Peaked: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Prabhudas Lilladher Report.We cut CY23/24 earnings per share estimates of Nestle India Ltd. by 3.5%/2.7% following 118 basis points QoQ gross margin slippage in Q3 CY22 despite double digit topline growth and strong momentum across key brands. Growth momentum was intact across large metros and smaller towns and across channels particularly modern trade and out-of-home. Medium to long term growth drivers remain intact led by-sustained expansion in rural reach (~ 20% of sales),availability of capacity in Maggi post expansion,huge scope of growth in segments like coffee, ready-to-drink and chocolates andchannels of future like e-commerce as well as newly launched direct-to-consumer website platform - mynestle.in (7.2% of revenues). Although we expect Nestle India to gain from lower costs of palm oil while firm prices of food grains, coffee and milk might prevent a sharp uptick in margins in near term..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nestle India Q3 Results Review - Input Cost Pressures Have Peaked: Prabhudas Lilladher

Strong growth across key brands, input pressures to remain in near term.

Choose a plan