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Nestle: Stock offers good opportunity for medium to long-term investors

Strong resilient portfolio, along with recent ready-to-eat launches and focus on rural distribution, indicate good growth potential

Nestle
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While Nestle's portfolio has a large chunk of essential products, which are resilient in the current uncertain or volatile economic situation, its prepared dishes/ready-to-eat segment has study growth potential.

Shreepad S Aute
Shares of Nestlé India have not only seen some correction in the recent past, but have also significantly underperformed the sector and benchmark indices.

The disappointing performance in the June quarter (Q2) has added to the pressure, given that the stock has shed 7 per cent since the results were announced last month, while Nifty FMCG index has risen 1.6 per cent during this period.

The underperformance is more stark over a longer time period. Nestlé India’s stock is down over 
10 per cent since April 27, compared with an over 24 per cent rise in the Nifty and 8 per cent gain

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First Published: Aug 27 2020 | 6:53 PM IST

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