Nestle India hits record high of Rs 8,090, up 3.5%

Nestle India hit a new high of Rs 8,090, up 3.5% on the BSE on Tuesday, surpassed its previous high of Rs 8,001 recorded on December 14, 2017.

Since February 9, 2018, the stock of packaged foods company has outperformed the market by surging 16% after reported a healthy 59.5% year-on-year (YoY) growth in net profit at Rs 3,118 million in December 2017 quarter (Q4CY17). On comparison, the S&P BSE Sensex was down 2.3% during the same period.

“Nestlé India has underperformed the broader market and consumer peers over the past year given the slower-than-expected pace of earnings growth.

Stock valuations (on a relative and absolute basis) are trading below historical averages,” analyst at JP Morgan said in recent note.