Result date: 21st April 2022
Target Price: Rs18,300
Nestlé India is expected to record healthy revenue growth for the quarter ending March 31, 2022. Much of this growth is expected to come from the domestic market, although export revenue may see a decline from the US quarter. last year. The recovery in out-of-home (OOH) consumption will be a key positive. Rural demand continues to be slow and is a controllable key.
While gross margins could be impacted by rising input costs, price increases and cost rationalization could provide downward support to the EBITDA margin.
PAT is expected to grow 3% from the prior year quarter, reflecting pressures from high input costs.
Important management information to monitor:
Insights into consumer trends across markets and segments
Commodity price scenario
Planned tariff action
New product launch pipeline
March 2022 estimates
|Profit after taxes||6,206||3.0%|
Source: IIFL Research