Nestle India Ltd. share price rose as high as 2.5% on Wednesday after receiving a positive growth outlook and review from Nuvama.
The shares jumped to a high of Rs 1,397, exceeding Nuvama's price target of Rs 1,383 for the FMCG major by 1%.
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The stock pared some gains to trade 2% higher at Rs 1,389.40 apiece as of 9:35 a.m. on the NSE, compared to a 0.3% advance in the nifty index.
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Nuvama has maintained a buy rating on the stock with a price target of Rs 1383, factoring in Q2 sales growth, volume, low cocoa dependency, penetration headroom for noodles among other things.
Sales growth for the second quarter of FY27 were seen at 20% year-on-year, compared to 10.6% base, driven by volume growth, premiumisation and e-commerce.
Volume growth could remain strong, according to the brokerage, with 20% year-on-year rise estimated in Q1FY27. Chocolate growth could benefit from lower cocoa dependence, potentially supporting market share gains.
Nuvama sees E-commerce contribution at over 13% with premium products contributing twice more than traditional channels.
There is also significant penetration headroom across noodles, while coffee and chocolates can support long-term growth, according to the brokerage.
Premium portfolio contribution rose to 14% in FY26, compared to 11% in 2021, implying a 17% CAGR, while distribution reach expanded to 6.2 million outlets in Jun-26, as against 5.7million in 2023.
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