BoB Capital Assigns "Buy" On FMCG Sector Stock, Sees Up to 16% Gains, Soars 3.42%

BoB Capital Assigns "Buy" On FMCG Sector Stock, Sees Up to 16% Gains, Soars 3.42%
BoB Capital Markets has recommended investors to "Buy" Nestle India Ltd. (NEST) for a target price of Rs 22,860 apiece. If you buy the stock at the current market price, it can fetch up to 16% potential upside. NEST is an FMCG giant having a market capitalisation of Rs 1,89,982 crore. The stock is set to consider an interim dividend for the year 2023, at its meeting proposed to be held on Wednesday, 12th April 2023. Key details below:

Current Share Price, 52 Week Low/High, Returns

The stock of NEST last traded at Rs 19,704.50 apiece, soaring 3.42%. It recorded the 52 week high on 24 October 2022 at Rs 21,050 apiece, and 52 week low on 19 May 2022 at Rs 16,000 apiece, respectively.

It gained 3.96% in the last 1 week and 5.54% in the last 1 month, respectively. It gave 13.37% positive return in 1 year. In the past 3 years, it gave 20.88% positive return. In the past 5 years, it gave 140.19% positive return.

Annual report highlights: Stellar performance in a difficult year

BoB Capital Markets said, "NEST's strategy of market penetration-led volume growth is yielding results. We expect the company's thrust on building volumes, deepening rural and semiurban reach, product innovation and premiumisation to fuel its growth momentum. The stock is trading at 63.8x/55.8x CY23E/CY24E EPS. We maintain BUY and continue to value the stock at 67x CY24E EPS, in line with the long-term mean, translating to an unchanged TP of Rs 22,860."

Disclaimer - The stock has been picked from the brokerage report of BoB Capital Markets. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.