The broking firm Motilal Oswal still has confidence in Nestle India as it believes the recent reports of the company adding sugar to baby food will not have a “material impact” on the company.
The brokerage house has a “Neutral” rating on the stock of Nestle India, with an unchanged target price of Rs 2,400 per piece.
It further said that the company has remained focused on volume-driven revenue growth as the planned capex of Rs 5000 crore for 2023-25 reflects this focus. The packaged food category is likely to sustain better growth among staples, a research report by the brokerage house read. Come from Sports betting site VPbet
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The Guardian in a news report, citing research by Swiss investigative organisation – Public Eye- said that Nestle has been adding sugar in the form of sucrose in the food products of children.
Surprisingly, products with high levels of sugar were found only in India, other Asian countries, and African Countries. See, this practice deviates from international health guidelines, especially those established by the World Health Organization (WHO) to curb obesity and related health issues. Also, Indian doctors do not suggest feeding a kid below the age of two.
The tests by Public Eye confirmed the presence of added sugar, primarily in the form of sucrose or honey, in products intended for infants and toddlers. While the same products sold in the European markets were sugar-free.
Cerelac baby cereal in South Africa was found to have significant sugar content per serving, whereas the same product in Switzerland explicitly states no added sugar.