Nestle India Share Price opened at Rs 2603 and has touched intraday high of Rs 2677 till the time of publication of this report. The stock is looking strong on the charts and is close to yearly high of Rs 2769. We can expect Nestle India to close positive for today's trading session. Indian markets opened strong today but have given up some of the initial gains.

US Federal Reserve reduced interest rates by 50 basis points. The US markets had a muted reaction but investors were expecting 50 basis points and we can see further rally in global stocks in the upcoming days.

Geojit BNP Paribas has given HOLD Call for Nestle India with target price at Rs 2680. The stock has already reached its target.

Geojit BNP Paribas has maintained its HOLD rating on the company’s stock, citing a strong product portfolio, robust demand, and an expansive distribution network as key factors supporting its market position. The company’s continuous innovation and strategic focus on new products are expected to enhance performance and solidify its market share. Additionally, a recent joint venture with Dr. Reddy’s Laboratories in the nutritional health solutions industry further boosts its growth prospects. However, rising commodity prices pose a potential risk to margins in the near term. The research report sets a target price of ₹2,680 based on 65x FY26E adjusted EPS.

Robust Product Portfolio and Distribution Network

Geojit BNP Paribas highlighted the company's strong product portfolio, which continues to meet market demand effectively, supported by a well-established distribution network. This combination has positioned the company to capitalize on market opportunities, ensuring steady revenue streams. The research emphasizes that ongoing product innovation will further bolster its market position, driving upgrades in overall performance metrics. As a result, Geojit has reiterated its HOLD rating with a target price of ₹2,680, rolling forward projections based on 65x FY26E adjusted earnings per share.

Strategic Joint Venture with Dr. Reddy’s Laboratories

The company recently entered into a strategic joint venture with Dr. Reddy’s Laboratories (DRL), forming Dr. Reddy’s and Nestlé Health Science Limited, focused on the nutritional health solutions industry. Under the agreement, the company has acquired a 49% stake in the JV, while DRL holds the remaining 51%. This partnership aims to harness synergies between the two companies, enhancing their performance in the fast-growing nutritional sector. The joint venture is expected to become operational by the second quarter of FY25, positioning both firms to leverage combined expertise and expand their market influence.

Performance Boosted by Product Innovation and E-commerce Growth

The introduction of new products in key market segments, coupled with a strategic emphasis on e-commerce acceleration, has been instrumental in enhancing the company’s performance. As digital sales channels continue to grow, the company’s focus on expanding its online presence is expected to drive further market share gains. The company’s commitment to strengthening its distribution network remains a critical component of its growth strategy, enabling broader reach and improved customer access.

Market Outlook: Strong Demand Amid Margin Pressures

Demand for the company’s products is anticipated to remain strong, buoyed by continuous innovation and strategic market positioning. However, the research report cautions that rising prices of certain commodities could exert pressure on profit margins in the near term. Managing these cost pressures will be essential for maintaining financial performance as the company navigates the current economic landscape. The focus on optimizing the supply chain and pricing strategies will be key to mitigating these challenges.