Neutral Nestle India Ltd for the Target Rs. 1,300 by Motilal Oswal Financial Services Ltd
* We model 12% YoY consol. revenue growth. Domestic business is expected to grow 12% led by volume. The growth is supported by the normalization of trade post-GST implementation.
* NEST has been strategically taking pricing action in response to rising commodity prices.
* We expect GP margin contraction of 120bp YoY, but it has expanded 90bp QoQ to 55.2% due to the moderation in RM prices sequentially. EBITDA margin to contract by 40bp YoY to 23.1%.

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