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Nestle India Q3 Review - Strong Growth Outlook: Prabhudas Lilladher

Nestle India Q3 Review - Strong Growth Outlook: Prabhudas Lilladher

Nestle India Ltd. KitKat chocolate bars at a store in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
Nestle India Ltd. KitKat chocolate bars at a store in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Nestle India Ltd. sustained double digit growth as all categories except Maggi posted double digit sales growth led by strong consumer traction and gradual opening up of the economy.

Nestle continues to gain across channels with modern trade growing in mid-twenties while e-commerce is sustaining faster growth.

The company has increased focus on rural growth by increasing village coverage by 33% through relevant/ rural centric products which will accelerate growth as rural and semi-urban markets are growing at 2-2.5 times of urban and are contributing just ~20-22% of sales of Nestle.

The company’s capex plan is on track and it has commissioned Sanand facility which will ease supply constraints in Noodles and also reduce cost given highly modern and state of the art facility.

Click on the attachment to read the full report:

Prabhudas Lilladher Nestle India Q3CY21 Result Update.pdf

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