Nestle India rises 4% on better Q2 show; CLSA maintains outperform

-

Kotak Institutional Equities has maintained reduce call on the stock with a target at Rs 10,700 per share.





The share price of Nestle India rose more than 4 percent in the early trade on August 5 after the company reported better numbers for the quarter ended June 2019 (Q2FY20).

The company's Q2 net profit jumped 10.8 percent to Rs 437.8 crore versus Rs 395 crore in the same quarter last fiscal.

Revenue of the company increased by 11.2 percent to Rs 3,000 crore versus Rs 2,698.4 crore.


Kotak Institutional Equities has maintained reduce call on the stock with a target at Rs 10,700 per share.

The company's earnings weighed down by weak gross margins mainly due to sharp rise in milk prices, however, the domestic revenues grew a strong 13% YoY, said Kotak Institutional Equities.

The execution engine is performing well in the context of some slowdown in the broader market, while the new extensions continue to highlight agility of new volume-focused Nestle, it added.

CLSA has maintained outperform rating on Nestle India and raise target to Rs 12,415 from Rs 11,750 per share.

The second quarter is clearly indicates management rising obsession with growth, which is the key positive, also the announcement on capex is also points to its growth ambition, said CLSA.

However, it cuts EPS by 2-5%, but this is due to a special dividend, which warrants a cut in other income.

At 09:29 hrs Nestle India was quoting at Rs 11,851.00, up to Rs 423.15, or 3.70 percent on the BSE.



Best Share Market News, Click Here To Get More News - Share Market tips, for 2 Days Free Trial give a missed call @9644405057 and Get Share Market Services.

Comments

Post a Comment

Popular posts from this blog

Daily equity Market By Ripplesadvisory Report 16-Aug-2016

-
MARKET WRAP UP The Sensex and Nifty jumped over one per cent on Friday and were headed for their second session of gains, led by energy stocks, including Reliance Industries Ltd, as oil prices extended their rally. Domestic sentiment was also buoyed on continued buying by investors ahead of IIP and inflation data scheduled to be released later in the day. US stocks closed at record highs on Thursday as surging oil prices and strong earnings buoyed investor sentiment, giving a boost to Asian markets. Dealers said widening of positions by participants ahead of key economic data —— industrial production (IIP) for June and consumer price index (CPI) for July —— to be released after market closing today also added to the upbeat investor sentiment. At 3.05 pm, the Sensex was up 315.38 points or 1.13 per cent at 28,174.98 while the NSE Nifty was up 85.7 points or 1.00 per cent at 8,677.85. Sentiment also got a boost as foreign investors continued to buy Indian shares for a...
Read more

11-year data suggests bears control D-Street in September; can bulls defy odds?

-
Image
The Sensex was down 11 per cent in September 2008, 5.4 per cent in 2018 and dropped by 2.1 per cent in the same month in 2011, data from AceEquity shows. Indian markets remained in a bear grip in August and the trend is unlikely to shift towards the bulls with no big triggers expected in September, say experts. The month of September is off to a muted start, with both the Sensex and the Nifty trading below crucial support levels. The Sensex broke below 37,000 and the Nifty 11,000. Anecdotal evidence suggests that the index has given flat to negative returns in September in six of the last 11 years. The index saw a drop of more than 11 percent in September 2008, followed by 2018 when it slipped 5.4 percent, and in 2011 it dropped by 2.1 percent, data from AceEquity shows. Apart from two tall towers witnessed in 2009 and 2010, the gains in September in the 11-year period have not been that inspiring. The index rallied 10.2 percent in 2010, followed by 10.13 pe...
Read more

Oil prices mixed; Brent eases as trade tensions weigh

-
Image
U.S. West Texas Intermediate (WTI) crude futures were up 15 cents, or 0.2 percent, at $68.84 a barrel by 0309 GMT. WTI fell 1.3 percent on Friday. Oil prices were mixed on Monday with U.S. benchmark WTI nudging higher after four weeks of declines, while Brent began the week lower as the fallout from trade tensions weighed on markets. U.S. West Texas Intermediate (WTI) crude futures were up 15 cents, or 0.2 percent, at $68.84 a barrel by 0309 GMT. WTI fell 1.3 percent on Friday. Brent crude futures fell 5 cents to $74.24 a barrel, after notching up a 1.7 percent weekly increase last week, the first gain in four weeks. The U.S. economy grew at its fastest pace in nearly four years in the second quarter, but trade tensions remain high between Washington and Beijing despite an easing between the United States and the EU. "Concerns around the U.S.-China trade wars continue to weigh on prices, while the halt in Saudi shipments through the Red Sea waterway has seemi...
Read more