Friday, 7 November 2008

Accumulate Nestle India, target of Rs 1626: Angel

Angel Broking has maintained an accumulate rating on Nestle India with a target of Rs 1626 in its October 31, 2008 research report. "For 3QCY2008, Nestle reported a strong Topline growth of 22.2% yoy to Rs 1,108 crore (Rs 907 crore). We have marginally revised our estimates for the company factoring in higher Margin pressure (on account of rising input costs and ad expenses). At the CMP of Rs 1,450, the stock is trading at 22.3x CY2009E Earnings. Nestle justifies its premium valuations compared to its peers on account of its global parent support, strong brand recall, excellent Return Ratios and superior EBITDA Margins. We maintain Accumulate on the stock, with a revised Target Price of Rs 1,626 (Rs 1,756)," says Angel Broking's research report.

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Source: Moneycontrol

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