FSSAI Maggi Notice Revives 2015 Recall Ghosts; UBS Cautious, Nomura Backs Buy at Rs 1,500
FSSAI has served Nestle India a notice over an alleged larvae complaint sourced from social media, echoing the 2015 Maggi crisis that drove a 30bps organic growth drag and 10-20bps margin hit. Nestle denies the claim with clean lab results. Stock fell 3%; UBS stays Neutral, Nomura retains Buy.
What happened
FSSAI issued Nestle India a notice over alleged larvae in a Maggi packet from a social media complaint. Nestle disputes claim citing clean lab tests. UBS stays
Key facts
- 3% stock fall
- 2.2% of global sales
- 30bps organic growth drag (2015)
- 10-20bps margin hit (2015)
- Rs 1,500 target (Nomura)
- CHF 80 target (UBS)
Why this matters
Regulatory overhang on the category leader is a window to revisit adjacent noodle/instant-food asset valuations while Nestle is distracted defending its flagship SKU.