Nestle India's target Rs 2725: IIFL Securities's Top Stock to Buy Today

IIFL Securities recommends buying Nestle India at the current market price of Rs. 2627.15. They have set a target price of Rs. 2725, implying an upside potential of approximately 3.7%. Nestle India, a leading food and beverage company, is expected to benefit from its strong brand portfolio, resilient demand for its products, and continued expansion into new markets.

About Nestle India:

Nestle India, a subsidiary of the Swiss multinational Nestle S.A., is a leading food and beverage company in India. Incorporated in 1912, Nestle India manufactures and markets a wide range of products, including infant nutrition, milk products, beverages, chocolates, and prepared dishes. The company has a strong presence in the Indian market, with manufacturing facilities across the country and a distribution network that reaches over 750,000 retail outlets. Nestle India is known for its iconic brands such as Maggi, Nescafe, KitKat, and Cerelac. With a commitment to nutrition, health, and wellness, the company has a strong focus on research and development, and strives to provide high-quality products to its consumers.

52 Week Price Trend:

Nestlé India (NSE: NESTLEIND) is currently trading at Rs 2627.15, within the range of its 52-week high of Rs 2770.75 and low of Rs 1788. The stock has been consolidating in recent weeks after a strong rally earlier in the year. Analysts are generally bullish on the stock, citing its strong brand portfolio and resilient demand for its products. However, some concerns remain about the impact of rising input costs on the company's margins. Overall, Nestlé India remains a solid long-term investment for investors seeking exposure to the Indian consumer staples sector.

Stratzy's MOST Analysis:

NESTLEIND has been rated AA by Stratzy's MOST Framework, indicating a medium fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend. The company's strong management team, positive outlook, financial stability, and positive market trend have contributed to its AA rating. This indicates that NESTLEIND is a relatively safe investment with moderate risk.

Company's Fundamentals:

Nestle India (NSE: NESTLEIND) is a publicly traded company on the National Stock Exchange of India (NSE). Its stock metrics include: Stock PE (Price-to-Earnings Ratio) of 82.96, indicating that the current stock price is 82.96 times the company's annual earnings per share. PB Ratio (Price-to-Book Ratio) of 80.56, suggesting that the market value of the company is 80.56 times its book value (total assets minus total liabilities). Dividend Yield of 0.65%, representing the annual dividend paid per share as a percentage of the current stock price, providing investors with a return on their investment through dividends.

Fundamental and Technical information provided in this blog were last updated on 28 Mar, 2024

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