Nestle India Q2 results: Brokerages retain diverse views; what to expect stock going ahead
Nestle India recovered from the previous session’s losses as they rose over a per cent in intraday trade on Friday (July 28) in a weak market. The stock fell over 2 per cent on Thursday after the company reported its June quarter scorecard. Nestle India on Thursday reported a 36.8 per cent jump in June quarter (Q2CY23) profit.
Standalone profit grew to ₹693.3 crore for the three months ended 30 June from ₹510 crore in the year-ago period. Revenue from operations was up 15 per cent to ₹4,658 crore with domestic sales up by 14.6 per cent year-on-year. Ebitda grew by 25.4 per cent year-on-year; margins expanded by 186 bps year-on-year.
Read more: Nestle India June qtr profit up 36.8% After Nestle’s June-quarter numbers, brokerage firms came out with highly diverse views. A majority of them maintained their earlier views. Some recommended buying and accumulating the stock while some advised reducing it.
We have collated views of five brokerage firms. Take a look: The brokerage firm has a buy call on the stock with a target price of ₹25,810. "Nestlé’s Q2CY23 revenue grew 15.4 per cent YoY (in-line with our/Street’s estimates), while EBITDA and PAT grew 25 per cent and 35 per cent respectively – both ahead of our and Street’s estimates.
This is the fifth consecutive quarter of double-digit growth across all product groups – did well in both urban and rural (aided by proactive steps)," Nuvama observed. "We roll forward to Q2CY25E, yielding a revised target price of ₹25,810 (earlier ₹24,965). Nestle continues to be one of our top picks," Nuvama said.
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