Nestle India Shares Slide 4%, Approaching 52-Week Low as BoFA Downgrades to ‘Underperform’
📉 Stock Performance:
- Nestle India shares fell by up to 3.67% on April 2, 2025, hitting an intraday low of ₹2,150, nearing its 52-week low of ₹2,115
- The stock was the top loser on the BSE Sensex
🔻 BoFA Downgrade:
- BoFA Securities downgraded Nestle India to ‘Underperform’ from ‘Neutral’
- Target price maintained at ₹2,140
💡 Key Reasons for Downgrade:
- Valuation concerns: Analysts find Nestle’s valuations high given its growth outlook and peer group performance
- P/E ratio: Nestle’s P/E ratio stands at 63.07, suggesting overvaluation
- Earnings forecast: Reduced by 3-5% due to recent trends and cost pressures
- Growth outlook: Limited growth expected despite modest volume recovery
🛒 Portfolio and Strategy Changes:
- Portfolio evolution: Analysts foresee major changes over the next 3-5 years to address gaps and meet changing consumer preferences
- Geojit’s perspective: Despite the downgrade, Geojit sees long-term potential driven by investments in capacity expansion, rural market penetration, and product diversification
📊 Q4FY25 Expectations:
- Revenue growth: Analysts expect 5% YoY growth in consolidated revenue for Q4FY25
- Comparison: This is lower than Q3FY25’s 3.9% growth and Q4FY24’s 9.3% growth
Stay tuned for updates on Nestle India’s performance as Q4 results approach! 📈
