Thursday, 6 November 2008

Buy Nestle India, target of Rs 1756: India Infoline

India Infoline has recommended a buy rating on Nestle India with a target of Rs 1756 in its November 3, 2008 research report. "Nestle recorded 22.2% yoy growth in revenues at Rs 11.1 billion. Nestle recorded 13.5% yoy growth in adjusted net profit at Rs 1.3 billion. We believe Nestle is one of the best plays on the healthy growth potential in the Indian food-processing sector. Nestle management has been making attempts to widen the export basket of products and we believe the company to bring exports growth back on track in the near future."

"Strong brand portfolio (like Nestle, Maggi, Nescafe), expansion plans in the food business and new product launches (may also launch products from its global portfolio) will drive growth. We expect Nestle to witness 18.4% CAGR in revenues and 17.7% CAGR in net profit over F12/07-09E. We recommend BUY with a one-year price target of Rs 1,756, an upside of 21.1%," says India Infoline's research report.

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Source: Moneycontrol

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