Analysts have the most bullish outlook on Nestle India Ltd. in over nine years.
As many as 72.2 percent of the analysts tracked by Bloomberg have a ‘Buy' rating on the stock, while 16.7 percent have a ‘Hold' and 11.1 percent recommend a ‘Sell'.
The last time the analyst consensus ‘Buy' rating was so high on the fast-moving consumer goods major was in October 2008, when 75 percent rated it a ‘Buy''.
Nestle India shares hit a record of Rs 8,340 in intraday trade on Monday. Not only that, it has outperformed its multinational FMCG peers such as Colgate-Palmolive (India) Ltd., Hindustan Unilever Ltd. and Glaxosmithkline Consumer Healthcare Ltd. over the last month.
What's Working For Nestle India?
Its strategy of aggressively launching new products is working well and reflects in volume growth. Volumes rose 18 percent in the quarter ended December, according to the company's financial statement. That's the highest among peers.
The turnaround at Nestle India has begun and is now likely to gain momentum, a Credit Suisse report said.
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