Systematix holds Nestle India at Rs 1,460 as rich valuations cap upside
Brokerage flags FY27E P/E of 70x and FY28E of 61x as stretched, with GST benefit phase-out from Q3, Maggi base normalisation, and input-cost inflation pressuring margins. Forecasts 11% revenue CAGR and 13% EPS CAGR through FY28, with A&P spend and reach expansion further weighing on profitability.
What happened
Systematix maintains Hold on Nestle India with Rs 1,460 target, citing rich valuations, GST benefit phase-out from Q3, Maggi base normalization, input-cost
Key facts
- P/E 70x FY27E
- P/E 61x FY28E
- revenue CAGR 11%
- EPS CAGR 13%
- target price Rs 1,460
- FY28E P/E 65x
Why this matters
Stretched multiples and reach-expansion spend pressure organic returns, sharpening the case for bolt-on M&A or category extensions that can re-accelerate the topline beyond 11%.