Add Nestle India, target price Rs 22000: ICICI Securities

ICICI Securities has add call on Nestle India with a target price of Rs 22000. The current market price of Nestle India is Rs 19799.95.


Nestle India, incorporated in the year 1959, is a Large Cap company (having a market cap of Rs 191406.41 Crore) operating in FMCG sector.

Financials
For the quarter ended 30-09-2022, the company has reported a Standalone Total Income of Rs 4621.64 Crore, up 13.95 % from last quarter Total Income of Rs 4055.94 Crore and up 18.01 % from last year same quarter Total Income of Rs 3916.23 Crore. Company has reported net profit after tax of Rs 668.34 Crore in latest quarter.

The company’s top management includes Mr.Suresh Narayanan, Mr.David S McDaniel, Mr.Matthias C Lohner, Mr.Rajya Vardhan Kanoria, Dr.Swati A Piramal, Ms.Rama Bijapurkar, Ms.Roopa Kudva, Mr.P R Ramesh. Company has B S R & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 10 Crore shares outstanding.

Investment Rationale
The brokerage is bullish on Nestle and believes that it can outperform HUL in long term driven by multiple favourable factors (both extrinsic and intrinsic). Moreover, brokerage is of the view that Nestle is once again beating peers with broad-based improving (revenue) growth trajectory. The launch of its D2C platform(mynestle) is reflective of its intent to premiumise as well as further strengthen consumer engagement.