Stock views on Nestle, ITC

Motilal Oswal Securities on ITC

ITC’s 2QFY09 results were in line with our expectations. New FMCG business sales grew 29.4% to Rs 7,600 cr. It has been facing considerable headwinds in the cigarette business in the past couple of years. 75-80% filter cigarette conversion and expansion is positive. New FMCG is expected to remain in investment mode in the medium term. Hotels business, however, is likely to witness pressure on sales and profits.


Antique Stock Broking on NESTLE

Nestle’s dominant market share and continued innovation in the milk product category would help this business to grow at steady CAGR of 15%. We expect the prepared dishes and cooking aids category to be a key growth driver for Nestle going ahead led by an increase in penetration levels and launch of innovative variants. The decline in raw material prices would lead to higher profitability.