Share price of Nestle India rose more than 4 percent in the early trade on August 5 after company reported better numbers for the quarter ended June 2019 (Q2FY20).
The company's Q2 net profit jumped 10.8 percent to Rs 437.8 crore versus Rs 395 crore in the same quarter last fiscal.
Revenue of the company increased by 11.2 percent to Rs 3,000 crore versus Rs 2,698.4 crore.
Kotak Institutional Equities has maintained reduce call on the stock with a target at Rs 10,700 per share.
The company's earnings weighed down by weak gross margins mainly due to sharp rise in milk prices, however, the domestic revenues grew a strong 13% YoY, said Kotak Institutional Equities.
The execution engine is performing well in context of some slowdown in the broader market, while the new extensions are continue to highlight agility of new volume-focused Nestle, it added.
CLSA has maintained outperform rating on Nestle India and raise target to Rs 12,415 from Rs 11,750 per share.
The second quarter is clearly indicates management rising obsession with growth, which is the key positive, also the announcement on capex is also points to its growth ambition, said CLSA.
However, it cuts EPS by 2-5%, but this is due to a special dividend, which warrants a cut in other income.
At 09:29 hrs Nestle India was quoting at Rs 11,851.00, up Rs 423.15, or 3.70 percent on the BSE.
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