Neutral Nestle India Ltd For Target Rs. 2,400 by Motilal Oswal Financial Services Ltd
* We expect overall sales growth of 5.7% YoY, led by 5.5% growth in domestic sales and 10% growth in export sales. However, while demand recovery is underway, a higher dependency on urban markets may weigh on NEST volumes.
* The company has likely implemented a price hike in response to rising commodity prices.
* We expect GP margin contraction of 60bp YoY to 57%, impacted by a rise in RM prices like coffee and edible oil, while we model a stable EBITDA margin of 23.3% in 1QFY26.
* Nestle focuses on expanding its distribution reach, premiumization, and innovations.
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