Nestle India - Slow and Steady; Retain Accumulate - Emkay

Reco: ACCUMULATE
CMP: Rs 4866
Target Price: Rs 5000

- Domestic business mutes revenue performance. Pain persists in Nutrition and Chocolates due to portfolio rationalization and competitive intensity

- With major capex already incurred and working capital under control, we expect strong free cash flow generation and improvement in dividend payouts

- We bypass short term pain and remain positive on long term prospects. FCF yield of 3.4% for CY14E is comforting, Maintain 'Accumulate' with target price of Rs 5,000/Share.

Source : Equity Bulls

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