Street View - Nestle India faces inflation risks, slowing growth

By Reuters News

** Nestle India NEST.NS, the Indian arm of Swiss food giant Nestle NESN.S, 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

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