Nestle India (NEST), the leading nutrition, health and wellness company  1QCY21 reported in-line result driven by strong double-digit growth momentum in domestic business (3rd consecutive quarter) while revenue from exports continues to decline. Key brands like Maggi noodles, Kitkat, Nescafe classic, Maggi Sauce, Milkmaid, Maggi Masala Magic grew by double digits during the quarter driven by higher in-home consumption. Revenue from e-commerce grew 66%YoY, said IDBI Capital in its report.

Gross margin expanded for 3rd consecutive quarter however, management highlights inflation in the cost of raw material to be key challenge going forward. Dividend announcement of Rs 25/share is positive, it added.

IDBI Capital further said, "We have marginally trimmed our other income estimates for CY21-22E driven by lower expected realization of interest from bank deposits. We maintain our HOLD rating with a revised TP of Rs 16,195 (previous TP Rs 16,372)."  

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