Meanwhile, net sales rose 8.75 per cent to Rs 3,130.74 crore as against Rs 2,878.83 crore reported in the corresponding quarter last year. Among this, the domestic sales rose 10.04 per cent to Rs 2,960.78 crore relative to Rs 2,690.51 crore in October-December 2018. Exports, however, declined 9.74 per cent to Rs 169.96 crore. Furthermore, the company’s profit before tax (PBT) rose to Rs 614.6 crore from Rs 522 crore.
"The longer-term narrative on top-line and earnings growth remains extremely attractive not just because of successful implementation of growth strategy in recent years but also because of the packaged food segment in India offering immense growth opportunities, particularly for a company with a strong pedigree and distribution strength. However, current valuations of 58.1x CY21E EPS and 48.6x CY22E EPS appear to be completely factoring in the upside for the next one year," wrote analysts at Motilal Oswal Financial Services in a results review note. The brokerage firm, which values Nestle India
at 55x Mar’22E EPS, maintain "neutral" stance on the stock with a target price of Rs 15,500.
Additionally, the company's Board recommended a final dividend of Rs 61 for the year 2019. The final dividend, if approved by the shareholders at 61s1 AGM, shall be paid on and from May 28, 2020, it added.
On the managerial front, the Board recommended to re-appoint Suresh Narayanan as the Managing Director with effect from August 1, 2020 for another term of five years, and appoint David McDaniel, as 'Executive Director - Finance & Control and Chief Financial Officer" with effect from March 1, 2020, for a term of five years.
At 10:19 am, the stock was trading 0.5 per cent higher at Rs 16,500, as against a 0.17 per cent gain in the S&P BSE Sensex.