The maker of Maggi on the spot noodles and KitKat sweets reported a 9.6% rise in gross sales to Rs 3,864.97 crore. Shares of CLSA ended down 0.61% at Rs 19,258.40 on Wednesday.
Morgan Stanley has reiterated equal-weight advice on the inventory.
“3Q earnings have been forward of our estimates, however missed consensus. Double-digit home top-line progress and restoration in out-of-home channels are key positives,” mentioned Morgan Stanley. The brokerage mentioned excessive commodity inflation stays a headwind.
ICICI Securities and Vintage Inventory Broking maintained maintain ranking whereas UBS and Edelweiss retained their purchase ranking.
CLSA has lower earnings estimates for calendar yr 2021 to 2023 by 2-4% on margin efficiency lacking expectations and expectations of continued strain on gross margin.
“Valuation at about 58 occasions for CY23 seems costly and affords restricted upside,” mentioned CLSA.