Nestle India Ltd trades at a trailing price-earnings ratio of 60.3 times, almost twice that of its Switzerland-based parent whose shares have tumbled 9% this year. Mumbai: Multinational consumer giants like Unilever Plc and Nestle SA typically trade at a discount to their Indian units, given the nation’s growth potential. They’ve become even cheaper after the selloff, prompting Credit Suisse to ask if stock values of their local subsidiaries will follow suit. Nestle India Ltd trades at a trailing price-earnings ratio of 60.3 times, almost twice that of its Switzerland-based parent whose shares have tumbled 9% this year. “Given the valuation premium, it is critical for companies to at least meet their earnings expectations for Fiscal 2019,” Mitra wrote.

Source: Mint March 12, 2018 06:00 UTC