BUZZ — Street View — Nestle India faces inflation risks, slowing growth
* Nestle India, the Indian arm of Swiss food giant Nestle, warned about rising food inflation and higher commodity costs, even as its Q2 profit jumped 36% y/y on steady demand * Shares fall 1.09% to 1,261.5 rupees, extending losses from Thursday; YTD stock down 1.98% Growth Moderation, Margin Pressures * Jefferies ("hold", TP cut to 1,350 rupees from 1,425 rupees) expects co's growth to moderate in H2FY27 as benefits from low comparison base and consumption tax cuts fade; flags uncertainty over margins * JMFinancial ("add", TP cut to 1,450 rupees from 1,610 rupees) says double-digit volume growth and resilient margins demonstrate strong execution; adds sustaining volume momentum and festive demand will be key * Motilal Oswal ("neutral", TP: 1,350 rupees) expects sales growth to moderate from Q3FY27 as comparison base strengthens and food inflation rises; sees limited scope for further margin expansion * Dolat Capital ("accumulate", TP cut to 1,550 rupees from 1,670 rupees) cuts valuation multiple, citing sector derating, a higher sales growth base in H2FY27 and inflation-related margin pressures (Reporting by Surbhi Misra in Bengaluru) ((Surbhi.Misra@thomsonreuters.com | X: |;)
* Nestle India, the Indian arm of Swiss food giant Nestle, warned about rising food inflation and higher commodity costs, even as its Q2 profit jumped 36% y/y on steady demand * Shares fall 1.09% to 1,261.5 rupees, extending losses from Thursday; YTD stock down 1.98% Growth Moderation, Margin Pressures * Jefferies ("hold", TP cut to 1,350 rupees from 1,425 rupees) expects co's growth to moderate in H2FY27 as benefits from low comparison base and consumption tax cuts fade; flags uncertainty over margins * JMFinancial ("add", TP cut to 1,450 rupees from 1,610 rupees) says double-digit volume growth and resilient margins demonstrate strong execution; adds sustaining volume momentum and festive demand will be key * Motilal Oswal ("neutral", TP: 1,350 rupees) expects sales growth to moderate from Q3FY27 as comparison base strengthens and food inflation rises; sees limited scope for further margin expansion * Dolat Capital ("accumulate", TP cut to 1,550 rupees from 1,670 rupees) cuts valuation multiple, citing sector derating, a higher sales growth base in H2FY27 and inflation-related margin pressures (Reporting by Surbhi Misra in Bengaluru) ((Surbhi.Misra@thomsonreuters.com | X: |;)