Nestle India - Premium to continue… Maintain Accumulate :Emkay

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Nestle India

Premium to continue… Maintain Accumulate

ACCUMULATE

CMP: Rs4,349                                        Target Price: Rs4,268

---

n     Nestle’s sales growth at 20% to Rs 17.6 bn is in line with our expectations. APAT growth at 9% to Rs 2.2 bn is below our estimates of Rs 2.4 bn

n     Domestic revenue growth of 21% is indicative of 16% volume growth yoy, driven by healthy growth in prepared dishes and chocolates

n     Capacity expansion plans on track… lends strong growth visibility for future – Expect earnings CAGR of 18.5% over CY10-12E

n     Revise our estimates for CY11E/12E EPS by -1.7% to Rs 102.4/share and Rs 121.9/share, respectively. Maintain ‘ACCUMULATE’ rating with target price of Rs 4,268/share