By Aditya Raghunath
Investing.com — Investing.com had written about Nestle India Ltd (NS:) two weeks back. The stock was trading at Rs 16,742 then. It had fallen 9% from Rs 18,390 on December 31. Brokerages like HSBC were very bullish on the stock with a price target of Rs 20,000.
However, that hasn’t come to pass. Nestle shares fell even lower to Rs 16,101 on February 26. They have since moved up almost 2% and are currently trading at Rs 16,407. The positive momentum for the two trading sessions in March has given them a boost. Will it last?
Brokerages have tempered their targets on Nestle India although they say that the stock still has room to grow. Jefferies has lowered its target to Rs 18,100 from Rs 19,000. It says the company is under-indexed in rural areas and has a lot of room to grow there. It has over 40 launches in the pipeline and that should hold the company in good stead.
Prabhudas Lilladher has a target of Rs 17,364 for Nestle India. The brokerage firm says that Nestle covers 89,000 villages right now and is targeting 124,000 villages by FY24. This should boost the stock’s performance.
Sharekhan’s target price is the most bullish one for Nestle India with Rs 19,055. It says, “The stock has corrected by around 15% from highs and is trading at 53x its CY2022E EPS. Strong return profile, growth prospects and cheery dividend payout make Nestle a good pick.”