Steady performance; but valuations expensive

Company

11 Mar 2024 | 5 Min Read

Nestle India reported 8% YoY revenue growth in 4QCY24, with sustained 10% four-year revenue CAGR.

Domestic sales grew 9% YoY, supported by pricing, mix, and volume growth.

Export sales dropped 5.6% YoY during the quarter.

Gross margin expanded to 58.6% and EBITDA grew 13.5% YoY.

Nestle has been focusing on its RURBAN strategy and expanding distribution reach.

Valuations are expensive, with a Neutral rating and a TP of INR2,400.