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Nestle India Remains A 'Neutral' Bet For Motilal Oswal Despite Robust Q1 — Check Revised Target Price

Nestle has sustained its strong double-digit revenue growth momentum since Q2 FY26, supported by continued investments in brands, distribution expansion, and capacity augmentation, adds Motilal Oswal.

Nestle India Remains A 'Neutral' Bet For Motilal Oswal Despite Robust Q1 — Check Revised Target Price
Nestle's Q1 growth was further supported by calibrated price hikes, stable raw material prices, and GST 2.0-led tailwinds, says Motilal Oswal.
(Photo: NDTV Profit/ AI generated image)
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Nestle India Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Following Nestle India Ltd.'s robust Q1 FY27 performance, domestic brokerage firm Motilal Oswal has revised its target price to Rs 1,525 from earlier levels while maintaining a Neutral rating on the stock, citing expensive valuations and limited upside potential from current levels.

According to the brokerage, Nestle India continues to trade at elevated valuations of 68 times FY27E earnings per share and 60x FY28E EPS, which limits the scope for a more constructive stance despite strong operating momentum.

Nestle India Q1 FY26 Results Highlights

Nestle reported strong performance in Q1 FY27, with revenue growing 25% YoY (beat; 13% three-year CAGR) on a base of 6%.

Domestic revenue grew 25% YoY (vs estimate 19%), primarily driven by volume growth. GST-driven benefits continue to support volume growth (more sensitive for LUPs and serve-for-one products).

All four product groups delivered strong double-digit, volume-driven growth. The growth was equally balanced with high double-digit expansion across channels. Export revenue increased 36% YoY.

Click on the attachment to read the full report:

Motilal Oswal Nestle India Q1 Review.pdf
VIEW DOCUMENT

ALSO READ: Eternal Gets 'Sell' Rating After Q1; Dolat Capital Cuts Earnings Estimates, Sees Downside — Here's Why

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