Dec 7, 2006

NESTLE INDIA

Nestlé’s 11.7% yoy organic growth during the nine-month period of CY06 was supported by a 9.5% real internal growth (RIG) and a 2.2% rise in selling prices. Prepared dishes & cooking aids and Chocolates & confectionery have been the star performers during the period, led by strong continued volume growth. However, higher prices of key raw materials like Milk fats, Milk solids, Green coffee and Wheat have restricted the earnings growth. The company is attempting to offset the rise in raw material prices by price hikes and a keener focus on sales of value-added products. However, this is not expected to materially improve the margin performance during the next one year.

Buy this stock with a target of 1300+ in coming 6 months

No comments: