Can Nestle's rural push turn around its fortunes? Here's what analysts say

While the longer-term narrative for Nestle's revenue and earnings growth remains extremely attractive, near-term concerns on valuations cannot be ruled out

Nestle India's recently launched strategy of product innovation and deeper penetration in the rural areas bodes well for the stock of the firm, according to analysts, who see an up to 17 per cent upside for it from current levels.

The shares of the FMCG major have underperformed the market with a 12 per cent decline on a year-to-date (YTD) basis. During this period, the Nifty has jumped 3 per cent while the Nifty FMCG index has dipped 5 per cent, as per ACE Equity data.

Going ahead, however, the fortunes are expected to look up as Nestle, at its