Neutral Nestle India; target of Rs 1400: Motilal Oswal

Motilal Oswal's research report on Nestle India Nestle India (Nestle) reported an 18.5% YoY (11% two-year CAGR) revenue growth in 3QFY26, ahead of our expectations. We highlighted in our sector note (link) and 3QFY26 preview that packaged food companies are expected to benefit the most from the GST transition with minimum trade disruption. Nestle’s 3Q performance is a testament to the same, with robust growth across categories and channels. Domestic revenue growth stood at 18.3%, better than our estimates of 12%, driven primarily by underlying volume growth. While most categories delivered strong volume-led double-digit growth, the growth in Confectionery and the recovery in Milk Products and Nutrition were encouraging. Export revenue grew 23% YoY for 3Q. Outlook We expect a similar growth trajectory to be sustained in the coming quarters, led by a soft base and macro tailwinds. However, given its expensive valuation, we reiterate our Neutral rating with a revised TP of INR1,400 ...