Nestlé India Ltd. posted a combined March-quarter efficiency that beat analyst margin forecasts however fell quick on income and revenue expectations. Brokerages stay divided on the inventory, with a number of corporations flagging steep valuations as a key concern, regardless of indicators of gradual enchancment in quantity progress and margin resilience.
India’s third-largest fast-moving client items firm reported a 4% year-on-year income progress for the fourth quarter, in step with consensus estimates. Ebitda margins stunned positively, aided by decrease working bills, however the earnings per share print missed road expectations in some circumstances as a consequence of the next tax outgo.
Brokerages are broadly aligned on key themes—margin tailwinds from stabilising enter prices, like cocoa and edible oil, continued inflation in espresso and dairy costs, and a cautious stance on premium valuations amid delicate quantity progress tendencies.
Jefferies | Goal Value: Rs 2,350 | Score: Maintain
Jefferies flagged a slight miss on each income and Ebitda, regardless of higher margins pushed by decrease prices. The agency minimize its earnings per share estimates by 3%, citing weak quantity progress and a scarcity of main optimistic catalysts. Drinks and confectionery confirmed double-digit progress, led primarily by worth hikes, whereas the diet section continued to tug, it stated.
Macquarie | Goal Value: Rs 2,375 | Score: Impartial
The quarter was a margin beat, with Ebitda 6% above estimates. Macquarie attributed the beat to decrease advertising and marketing spends and doesn’t see it sustaining.
Whereas double-digit progress in drinks and confectionery was a spotlight, weak point in milk merchandise and continued stress on quantity momentum stay key issues. Valuations at round 65 occasions monetary 12 months 2027 earnings are seen as stretched.
JPMorgan | Goal Value: Rs 2,450 | Score: Obese
The brokerage known as the outcomes better-than-expected on margins, with regular income and improved distribution technique. Progress in e-commerce and fast commerce channels stays encouraging. The brokerage expects enhancing margins aided by easing costs in cocoa and edible oil, whilst dairy and low inflation persist.
Nuvama | Goal Value: Rs 2,825 | Score: Purchase
Nuvama maintained a optimistic stance, noting in-line income and Ebitda progress for the quarter. The brokerage minimize its earnings per share estimates by as much as 5% as a consequence of sustained value inflation and excessive depreciation linked to capital expenditure. Restoration in city demand is predicted by the second half of economic 12 months 2026. Maggi returned to quantity progress, and the pet care enterprise recorded its highest-ever progress since integration.
Emkay | Goal Value: Rs 2,300 | Score: Scale back
Emkay retained a bearish stance on Nestle, citing continued demand stress throughout massive components of the portfolio. Whereas margin supply within the March quarter was aided by value management, the brokerage stays cautious given weak volumes in milk merchandise and aggressive stress within the ready meals class. Uncooked materials inflation continues to be handed on through worth hikes, which might additional pressure demand.
Investec | Goal Value: Rs 2,386 | Score: Promote
Investec downgraded the inventory to ‘promote’, elevating its goal worth barely. The agency warned that valuations—at 61 occasions monetary 12 months 2027 estimated earnings—don’t replicate the corporate’s progress trajectory.
Whereas macro restoration and new product launches could assist, exit progress charges for the quarter have been delicate, and revenue-led earnings downgrade dangers persist. Espresso and cocoa inflation have been highlighted as key headwinds by the brokerage.
Nirmal Bang | Goal Value: Rs 2,415 | Score: Maintain
Nirmal Bang known as the quarter better-than-expected and sees a gradual resumption of double-digit income progress from monetary 12 months 2026. It stays constructive on the long-term packaged meals alternative in India however stated costly valuations—at about 68 occasions estimated earnings for monetary 12 months 2026—justify a cautious stance for now.
Nestle India shares have been buying and selling 1.27% decrease at Rs 2,402.2 apiece, in comparison with a 1.43% decline within the benchmark Nifty 50 as of 11:28 a.m. On the similar time, the Nifty FMCG, a gauge of the highest 15 firms within the house, was buying and selling 1.48% decrease.
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