Nestle India Q1 Results Review - Strong Growth Across Verticals: Dolat Capital

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Nestle India Ltd.'s Q1 CY23 results exceed our estimates. The company reported 21.2% YoY growth in the domestic market driven by healthy volume and mix led growth while exports business posted 24.9% YoY increase. Nestle India posted highest revenue growth in past 10-years (excluding growth in Q3 CY16). On a three-year compound annual growth rate basis, revenues increased by 13.3% - indicates acceleration in overall growth. E-commerce channel continues to maintain strong growth fueled by new formats - ‘quick commerce’ and ‘click and mortar’. Growth in organised channels was supported by outlet expansion. Gross margin decline by 160 basis points YoY mainly attributed to higher inflation in cost of fresh milk, fuels and green coffee. However, edible oils, wheat and packaging material costs have witnessed early signs of softening. Nestle India’s Q1 CY23 results were ahead of our estimates. Hence we have increased our CY23/24E earnings per share estimates to factor in increased demand for the company’s products. As the company has leadership position and unique positioning in most of the categories, we believe that its growth rate would remain high. Further, Nestle’s margins would improve gradually with softening in most of the commodity prices but high inflation in milk prices remains a concern..Click on the attachment to read the full report:.IndusInd Bank, Macrotech Developers Q4 Results Review: HDFC Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nestle India Q1 Results Review - Strong Growth Across Verticals: Dolat Capital

Revenue Ebitda and adjusted profit after tax was head of estimate.

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