External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We carried out detailed channel checks across India to gauge what has gone wrong and led to sub-par 1QFY25 performance, and how the current quarter is shaping up regarding the end consumer demand</li><li>We have been able to decipher the following reasons for this weak performance: (a) product formulation change coupled with packaging change in Lactogen in selected geographies has caused inventory correction</li><li>Moreover, the increased competitive intensity has majorly weighed on segmental performance (b) Nestle has stopped the practice of price laddering in the Noodles segment (c) disproportionate price increases in the coffee segment, which impacted end consumer offtake and (d) unfavourable weather conditions (extreme heatwaves) leading to reduced Out-of-Home consumption frequency, which affected the Out-of-Home channel’s performance</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We carried out detailed channel checks across India to gauge what has gone wrong and led to sub-par 1QFY25 performance, and how the current quarter is shaping up regarding the end consumer demandWe have been able to decipher the following reasons for this weak performance: (a) product formulation change coupled with packaging change in Lactogen in selected geographies has caused inventory correctionMoreover, the increased competitive intensity has majorly weighed on segmental performance (b) Nestle has stopped the practice of price laddering in the Noodles segment (c) disproportionate price increases in the coffee segment, which impacted end consumer offtake and (d) unfavourable weather conditions (extreme heatwaves) leading to reduced Out-of-Home consumption frequency, which affected the Out-of-Home channel’s performanceContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nestle: Interpreting the Weak 1QFY25 Performance. Maintain ADD

<ul><li>We believe Nestle has the potential for double-digit revenue growth in the medium term, unlike peers struggling with high single-digit growth, owing to several factors: (a) ramping up its rural distribution network, currently under-indexed, (b) focusing on substantial growth in its out-of-home channel, (c) prioritizing the salience of NPD and category creation efforts, (d) investing in capacity expansion (with a capex of INR 65bn over CY20-25) to align with long-term penetration-led volume growth objectives, (e) India’s prioritization as one of the top 10 markets despite contributing only 2% of global revenue</li><li>We also expect the EBITDA margin to expand c100bps from FY24-27 to 25%, despite being at a decadal high, owing to operational scale improvements, premiumization, and cost optimization initiatives</li><li>We upgrade Nestle to ADD from REDUCE with a TP of INR 2,750 (70x FY26 EPS) and recommend investors to accumulate the stock amidst any negative news flows.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We believe Nestle has the potential for double-digit revenue growth in the medium term, unlike peers struggling with high single-digit growth, owing to several factors: (a) ramping up its rural distribution network, currently under-indexed, (b) focusing on substantial growth in its out-of-home channel, (c) prioritizing the salience of NPD and category creation efforts, (d) investing in capacity expansion (with a capex of INR 65bn over CY20-25) to align with long-term penetration-led volume growth objectives, (e) India’s prioritization as one of the top 10 markets despite contributing only 2% of global revenueWe also expect the EBITDA margin to expand c100bps from FY24-27 to 25%, despite being at a decadal high, owing to operational scale improvements, premiumization, and cost optimization initiativesWe upgrade Nestle to ADD from REDUCE with a TP of INR 2,750 (70x FY26 EPS) and recommend investors to accumulate the stock amidst any negative news flows.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nestle: Best Proxy on Great Indian Consumption Story. Upgrade to ADD

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Nestle delivered resilient all-round performance. This was driven by strong growth across all categories, with a healthy balance of the product mix, pricing, and volume growth.</li><li>Domestic revenue grew by 8.9% YoY (~5% volume estimates) and exports grew 19% YoY). Gross margins improved by 310bps YoY to 56.7% owing to softer RM and improved product mix. It reported EBITDA margins of 25.7%, up 289bps YoY.</li><li>The company’s adjusted PAT grew 27% YoY to Rs 934 cr.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nestle delivered resilient all-round performance. This was driven by strong growth across all categories, with a healthy balance of the product mix, pricing, and volume growth.Domestic revenue grew by 8.9% YoY (~5% volume estimates) and exports grew 19% YoY). Gross margins improved by 310bps YoY to 56.7% owing to softer RM and improved product mix. It reported EBITDA margins of 25.7%, up 289bps YoY.The company’s adjusted PAT grew 27% YoY to Rs 934 cr.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nestle India Ltd. - All Round Performance; Maintain BUY

External broker reports(aggregated public sources), ICICI Securities Ltd

ICICI Securities Limited

ICICI Securities Ltd

ICICI Securities Limited provides investment services. The Company provides corporate and investment banking, securities, wealth management, retail brokerage, initial public offerings, and advisory services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>ICICI Securities research report onMarico Over the last few years, Nestle and Jyothy Labs delivered volume outperformance thanks to activating the sales growth vector effectively (numeric distribution expansion and improved line selling).</li><li>Marico, with its new urban distribution (expansion) strategy and likely outperformance in D2C brands, has material potential to outperform in FY24-26E.</li><li>Apart from this, it is focusing on improving distributor ROI, better credit terms, range, assortment, etc.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ICICI Securities research report onMarico Over the last few years, Nestle and Jyothy Labs delivered volume outperformance thanks to activating the sales growth vector effectively (numeric distribution expansion and improved line selling).Marico, with its new urban distribution (expansion) strategy and likely outperformance in D2C brands, has material potential to outperform in FY24-26E.Apart from this, it is focusing on improving distributor ROI, better credit terms, range, assortment, etc.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Marico - Acceleration in Diversified Portfolio While Core Stabilises

External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Emkay Global Financial's research report onNestlé India Nestlé India is among the prime beneficiaries of heightened consumer adoption of packaged foods.</li><li>Current capex cycle of Rs64bn for CY20-25 is likely to support the company in addressing segment demand more effectively.</li><li>Nestlé’s thrust on penetration-led volume growth is helping it outperform sector volume growth.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Emkay Global Financial's research report onNestlé India Nestlé India is among the prime beneficiaries of heightened consumer adoption of packaged foods.Current capex cycle of Rs64bn for CY20-25 is likely to support the company in addressing segment demand more effectively.Nestlé’s thrust on penetration-led volume growth is helping it outperform sector volume growth.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nestlé India - Strong F&B Play; Awaiting Foot-In-The-Door Opportunity

India

Nestle India Limited is the Indian subsidiary of the Swiss multinational company Nestlé, operating as a prominent player in India's Fast-Moving Consumer Goods (FMCG) industry. The company manufactures and sells a diverse range of food products, beverages, chocolates, and confectioneries, with key brands including Maggi, Nescafé, and KitKat. Nestle India Limited was incorporated on March 28, 1959, and is headquartered in Gurugram, Haryana, India.

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Nestle India (NEST IN)

Nestle: Interpreting the Weak 1QFY25 Performance. Maintain ADD

We carried out detailed channel checks across India to gauge what has gone wrong and led to sub-par 1QFY25 performance, and how the current quarter...

HDFC Securities

Nestle: Best Proxy on Great Indian Consumption Story. Upgrade to ADD

We upgrade Nestle to ADD from REDUCE with a TP of INR 2,750 (70x FY26 EPS) and recommend investors to accumulate the stock amidst any negative news...

HDFC Securities

Nestle India Ltd. - All Round Performance; Maintain BUY

Nestle delivered resilient all-round performance. This was driven by strong growth across all categories, with a healthy balance of the product...

Axis Direct

Marico - Acceleration in Diversified Portfolio While Core Stabilises

ICICI Securities research report onMarico Over the last few years, Nestle and Jyothy Labs delivered volume outperformance thanks to activating the...

ICICI Securities Limited

Nestlé India - Strong F&B Play; Awaiting Foot-In-The-Door Opportunity

Emkay Global Financial's research report onNestlé India Nestlé India is among the prime beneficiaries of heightened consumer adoption of packaged...

Emkay

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