First Read Nestle India Ltd.: Stellar performance continues in Q1 FY27

研报英文原文证据摘录

First Read Nestle India Ltd.: Stellar performance continues in Q1 FY27

PS (UBS, diluted) (Rs)

volume-led double-digit growth, from premiumisation and strong e-commerce From To % ch Cons.

performance; 5) Beverages continued its volume-led, high double-digit growth 03/26E 17.76 17.76 0 17.52

trajectory for 20 consecutive quarters driven by both penetration and premiumization- 03/27E 20.46 22.25 9 20.45

led growth of coffee, and scaling up of RTD business; 6) Commodity outlook: Coffee 03/28E 23.66 24.76 5 23.50

prices to remain softer, with possibility of short-term volatility. Cocoa and sugar remain

pressured by erratic rains and weaker output, while edible oil prices have stabilized at Amit Sachdeva

Analyst

elevated levels. Wheat and milk are likely to stay range-bound, whereas protein input

amit.s@ubs.com

prices trend higher amid demand outpacing supply. +91-22-6155 6029

Nestle appeal lies in long term growth, but comes at elevated valuations Sidhant Jain

Associate Analyst

Structurally, we believe Nestle is well positioned to benefit from rising incomes and the sidhant.jain@ubs.com

premiumisation trend in India, with its discretionary and impulse-led food portfolio well +91-22-6155 6000

supported by E-commerce and quick-commerce tailwinds. Revenue growth has

Tushar Baijal

accelerated consistently in the past 4 quarters, on a benign base, with same expected to Associate Analyst

continue till the next quarter. Similarly, the base for EBITDA is benign till Q3FY27. tushar.baijal@ubs.com

Nonetheless, continued strong momentum beyond Q2 FY27 (when benign base effect +91-22-3051 5000

fades), has the potential to further expand the multiples and could prove to be a key

catalyst for the stock performance.

Maintain Neutral with PT of Rs1,650 (from Rs1,550 previously)