Logo


Nestle India's long path to recovery

Benign demand and expensive valuations could keep the stock price in check

Nestle: Long path to recovery

Atitsanalystmeetlastweek,NestléIndiamanagementre-emphasiseditsfocusonstrongvolume-ledgrowthonthebackofhigherinnovations.Thecompanyplanstointroducemanynewproductsinthepremiumsegmenttogrowprofitably. However,theStreetandanalystsarenotquiteconvinced.BeitsJunequarter(Q2)resultsonJuly29ortheanalystmeetonAugust22,theNestle’sstockhasunderperformedtheBSESensex. Nestle’saggressiononrevenuegrowthhasgeneratedexcitementbutnewlaunchesarenicheinnatureandwouldbeadragonearningsinthemedium ...