Nestle India extends rally on stellar June quarter, higher costs may limit upside

Nestle India posted strong June quarter results with revenue growth accelerating to 25.2% year-on-year and the highest June quarter EBITDA margin of 24.2% in at least four years, though the stock may stay range bound as the EBITDA margin moderated sequentially from 26.3% amid rising advertising and operational costs. Exports rose sharply to around Rs 2,902 crore from Rs 1,845 crore a year ago, and management expects demand momentum to stay healthy on premiumisation, rural penetration and quick commerce traction.