NEW DELHI: Shares of Nestle India climbed nearly 3 per cent in morning trade on Wednesday, a day after the company reported a 9.25 per cent rise in profit at Rs 463.28 crore for the first quarter ended March 31, 2019.Nestle follows January-December financial year.Total income in the quarter stood at Rs 3,076.14 crore.
It was Rs 2,813.6 crore in the corresponding period last year, Nestle India said in a BSE filing.Nestle said total sales increased by 9 per cent during the quarter under review.
Domestic sales increased by 10.2 per cent supported by higher volumes.Following the March quarter numbers, global brokerage CLSA maintained its outperform view on the stock with an unchanged target price of Rs 11,750.The brokerage said the company's growth focus continues as it plans to foray into organic food products under milk and nutrition segment.However, a slowdown in category growth and a sharp input price inflation are key risks for the company, the brokerage said.Citi maintained its buy rating on the stock with a target price of Rs 12,480 per share, underscoring that the focus on innovation is likely to remain a key growth driver for the company.
However, it said the company's March quarter numbers were slightly below expectations.Shares of Nestle traded 2.65 per cent up at Rs 10,485 on BSE around 10:10 am.