Nestle India's investors may have to take a break on muted Q4 show

While valuations are rich, analysts have trimmed earnings estimates by 2-4% for CY20-CY23

Shares of Nestlé India declined by 5 per cent in intra-day trade on Wednesday after the coffee to ready-to-cook foods company’s operational performance in the December-ended quarter (Q4) missed street expectations. It recovered some of the losses and ended the trading session with a cut of 2.8 per cent, but analysts say the near-term outlook for the stock appears unexciting. Nestle India follows January to December accounting year.

The company’s revenues in the fourth quarter missed consensus estimates, mainly on account of slower than expected recovery in out-of-home consumption and lower export revenue besides, lower-than-expected profitability. 

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