Shares of Nestle India, have been in demand among investors, having risen by about 25 per cent in the past four months. In contrast, the Nifty 50 and Nifty FMCG indices has lost about two per cent each in the same period. Double-digit volume-led topline growth in the June 2019 quarter, even as most of its FMCG peers saw their volumes decline, and recent inclusion of the stock in the Nifty 50 index, turned investors bullish on the maker of Maggi noodles, Nescafe and Kit Kat chocolates.
The stock’s outperformance, however, has also led to pricey valuation or price-earnings ratio