Nestle India (NEST IN) Hold: FY26 – MPN segment growth subdued again

研报英文原文证据摘录

Nestle India (NEST IN) Hold: FY26 – MPN segment growth subdued again

8 June 2026

Nestle India (NEST IN) EquitiesFood Products

Hold: FY26 – MPN segment growth subdued again India

◆ MPN segment clocked only 1% yoy revenue growth in FY26, MAINTAIN HOLD

even as other segments delivered a robust year

TARGET PRICE (INR) PREVIOUS TARGET (INR)

◆ Push on rural expansion visible; A&P expenses grew 27%

1450.00 1410.00 yoy in FY26

◆ Retain Hold; strong portfolio, but growth upgrades look difficult SHARE PRICE (INR) UPSIDE/DOWNSIDE

and valuations are steep; lift TP to INR1450 from INR1410 1386.20 +4.6%

(as of 05 Jun 2026)

Nestle India has released its FY26 annual report. Below, we set out our initial takeaways. MARKET DATA

Market cap (INRm) 2,673,009 Free float 37%

Confectionery business (19% of FY26 sales) saw the strongest revenue growth in Market cap (USDm) 28,152 BBG NEST IN

3m ADTV (USDm) 31 RIC NEST.BO

the portfolio at 33% yoy. The company attributed this to increased distribution,

visicoolers (60k active in the market) aiding customer experience and new launches. FINANCIALS AND RATIOS (INR)

Year to 03/2026a 03/2027e 03/2028e 03/2029e

Powdered and Liquid Beverages business (PLB, 16% of FY26 sales) also saw HSBC EPS 17.76 20.77 23.53 26.15

HSBC EPS (prev) 17.76 20.92 23.51 26.10

strong revenue growth of 26% yoy, driven by volumes (+18% yoy) vs the pricing- Change (%) 0.0 -0.7 0.1 0.2

driven growth seen over the last couple of years. India’s coffee penetration continues Consensus EPS 16.76 20.35 23.43 26.51

PE (x) 78.1 66.7 58.9 53.0

to improve along with premiumisation efforts by the company. Dividend yield (%) 0.9 1.1 1.3 1.4

EV/EBITDA (x) 50.0 42.1 37.4 33.7

Prepared Dishes and Cooking Aids (PDCA, c32% of FY26 sales) delivered c12% ROE (%) 72.6 68.9 66.0 62.4