Nestle India (NEST IN) – Analyst Meet Update – Focus on volume led growth amidst El Nino overhang – ACCUMULATE
Published on 04 Aug 2026
Nestle India analyst reinforced our confidence in the company sustaining strong double-digit sales growth over medium term. NEST growth strategy is centered on 1) Low penetration of 37/33/23% in Instant Noodles, Coffee and Wafer chocolates 2) significant scope to increase rural distribution (4x direct increase since 2020) 3) gaining traction in Ecom/QC with higher growth, premium salience and new launches and 4) rising share of premium products in total sales (up 300bps to 14%, 17% CAGR since 2021). NEST seems well placed to gain from adequate capacities (Rs64bn capex completed), benefits of global innovation, strong brands and strong supply chain. The stock currently trades at 61.8x FY28 EPS and will likely give back ended returns given rich valuations. Retain Accumulate
