Nestle India’s Record Date Is 2 Weeks Away For 1:10 Stock Split: Buy The Shares?

With the company announcing January 5 as the record date for its stock split, the shares of the large FMCG giant Nestle India are in focus. With just two weeks before the record date, investors and market watchers must be questioning whether or not to purchase the stock in order to be eligible for a 1:10 stock split, which will divide each share an investor owns into ten shares.

Nestle India Stock Split

"Pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Company has fixed Friday, 5th January 2024 as the "Record Date" for determining entitlement of Equity Shareholders for the purpose of sub-division/ split of existing Equity Shares of the Company, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, will be sub-divided into 10 (ten) equity shares having face value of Re. 1/- (Rupee one only) each, fully paid-up, ranking pari-passu in all respects which was approved by the Equity Shareholders through Postal Ballot on 8th December 2023, as already intimated to the Stock Exchanges vide our letter no. PKR:SG: 84:23 dated 8th December 2023," said the FMCG giant in a stock exchange filing.

Nestle India Financials

For the third quarter of the current calendar year (Q3CY23), Nestle India Ltd. reported a 37.28 per cent year-on-year (YoY) rise in profit after tax of Rs 908.08 crore as opposed to Rs 661.46 crore in the comparable quarter of the previous year. In comparison to the same quarter last year, when revenue from operations was Rs 4,601.84 crore, it climbed 9.45% YoY to Rs 5,036.82 crore in Q3CY23. With a 9.44% increase, the total income for Q3CY23 was Rs 5,070.1 crore as opposed to Rs 4,632.5 crore in the same quarter of the previous fiscal. From Rs 1,009.6 crore to Rs 1,225 crore, YoY, EBITDA jumped by 21.3%. The EBITDA margin fell from 22.1% to 24.3% YoY, a reduction of 220 basis points (bps).

Nestle India Share Price Target

Nestle's stock surged as much as nearly 4.50% and is currently trading at Rs 25,430.85. The share price has delivered approx. 21% YoY. Its PE ratio is higher compared to its sectors which is 49.90 as of date. It's an "All weather Stock" as it belongs to the consumption sector. Its daily RSI is in the 26350 range.

It looks good to buy in the 24830 to 25350 range. Right now it is trading at its "All time high" but is still bullish. One can keep target exaptation from 27000 to 30000. The holding term should be 2 Months to 1 Year. Keep stop loss at 23200", suggested VLA Ambala, SEBI Registered Research Analyst and Co- Founder of Stock Market today on Nestle's outlook.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.