About the Company:
India’s largest FMCG Company with a basket of products such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA has established itself as a leading manufacturer of consumer non-durables since 1,961. The Company has also introduced products in dairy consumption such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita.
QoQ & YoY Performance:
India’s leading FMCG brand has declared the results for the third quarter of fiscal year ending March, 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs. 31,307.4 millions, fell by 2.14% in the December quarter of FY20. Total expenditure (excluding interest and depreciation expenses) is Rs. 24,714.2 millions, increased by 0.29%. EBITDA numbers fallen by 10.55%.
- YoY Performance: The Company has reported decent growth in sales/revenue which are increased by 8.75% while expenditure (excluding interest and depreciation expenses) of the company increased by 5.31%. EBITDA numbers surged by 15.47%.
- Profitability of the company: Net Profit of the company posted during this quarter at Rs. 4,730.2 millions, dropped by 20.56% QoQ while an uptick of 38.41% was seen yearly basis.
- Dividend :The company has proposed a final dividend of Rs. 61.
As per Lokesh Sethia, SEBI Registered Research Analyst, with a tag of Multi National Corporation, the stock has always maintained its status-quo in posting results. The company has reported a decent growth in thier net sales that serve as a major catalyst. Net profits of the company has been increased sharply by 38.41%. The company has reported a hefty dividend of Rs. 61 by the company. We advise you to 'BUY' for a target of Rs.18,000 in six months horizon.