The Indian subsidiary of Swiss Nestle SA rose as much as 1.7 percent on NSE (National Stock Exchange) to a record high of Rs 10,060.45 around 9:30 am on Monday crossing the Rs 10,000 mark for the first time.
Shares of Nestle India have been on the 'buy' ratings for a while now after it reported a higher than expected profit of Rs 424.03 crore in its March 2018 ended quarter. It was a 35.98 percent jump in profit as per a BSE (Bombay Stock Exchange) filing. It outperformed its peers in consumer goods like Dabur India, Enami, Marico and Godrej Consumer Products in terms of March quarter numbers.
Analysts at Jefferies India Ltd said that Nestle's sales growth was due to gain in sales from a large volume growth of 10-11 percent. It also said that new launches and a gain in market share also helped the company achieve double-digit volume growth.
The company also announced its entry into the Indian breakfast cereal segment from a 50:50 joint venture between Nestle and General Mills which already distribute their products like Cheerios internationally.