Maintain Accumulate on Nestle - Near term pain, Long term gain - Emkay

- Volume growth under pressure however RIG stood at 9.8% yoy in H1CY12. 40 bps one-off in Ebidta margin expansion in H1CY12 was a negative surprise

- Confectionary, Milk & Nutrition and Prepared Dishes reported weak volume growth which demonstrates inherent weakness across categories

- Nestle is likely to report lower growth (~15%) in the short term (until Q3CY12). Also, risks to margins and earnings performance remain alleviated

- We retain our positive bias, despite short term hiccups on account of peak asset spends undertaken and consistent performance alongside value growth possibility.

Source : Equity Bulls

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