Rural push, new launches to sustain growth trajectory for Nestle India

Valuations are, however, rich limiting the upside potential

After its third consecutive quarter of double digit growth in the domestic market and given multiple triggers, the street expects Nestle India to maintain its growth trend and outperform peers. 

Most of its key brands across categories such as Maggi, Kitkat, Nescafe and Milkmaid reported double digit growth aided by in-home consumption. E-commerce sales, which account for just under 4 per cent of sales reported a growth of 66 per cent y-o-y and this trend is expected to continue. In the near term, Covid-related restrictions could lead to improvement in volumes due to stocking of key brands. 

Emkay’s Ashit Desai