What should you do with Nestle stock after its Q1 earnings? Preeyam Tolia answers
«So, if you see what we build up for the domestic business, the 5% volume growth and overall, the 9% top line growth for the company, but again the numbers are not pretty well for the company and also as I said earlier that the volatility in the raw material prices, especially in the cocoa and the coffee prices,» says Preeyam Tolia, Axis Securities.
What is your first outlook coming in for Nestle India? The numbers they seem to be below estimates, at least for ET Now poll.
Preeyam Tolia: Yes, the numbers are below our estimate as well in terms of the top line as well as on the margins front. So, please note that there is inflation in the raw material prices which has also impacted margins. At the same time, the volumes have not picked up as per the anticipation. So, the numbers are pretty weak for Q1.
What sort of a ballpark estimate did you have for the volume figure coming in for Nestle India and also the company mentioning that they are also seeing some structural cost increase in cereals and grains?
Preeyam Tolia: So, if you see what we build up for the domestic business, the 5% volume growth and overall, the 9% top line growth for the company, but again the numbers are not pretty well for the company and also as I said earlier that the volatility in the raw material prices, especially in the cocoa and the coffee prices.
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