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