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Higher raw material costs dent Nestle's operational performance in Sept qtr

The Nifty FMCG average valuations are 36 times, while its top six rivals are trading at an average of just over 50 times

Photo: Reuters
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Photo: Reuters

Ram Prasad Sahu Mumbai
Nestle India’s September quarter (Q3CY21) performance was a tad below expectations, even though it saw double-digit growth, as inflation pressures dented both the profit margins and bottom line. The company follows a January-December financial year. 

Given higher costs, brokerages ha­ve cut their calendar year CY21-23 ea­rnings estimates by 2-6 per cent. The stock, which has gained 18 per cent since the beginning of May, was down marginally on Wednesday, as a result.

Brokerages do not expect much upside from these levels, given near-term margin pressures and stretched valuations. At the current price, the most expensive stock in the FMCG large-cap space is

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