Rs 140/Share Dividend, 1:10 Share Split: Motilal Oswal Retains Neutral Call For FMCG Stock

Motilal Oswal has recommended neutral call for large cap FMCG giant Nestle India Limited with target price of Rs 23,900 per share. Current market price of Nestle India stock on BSE is Rs 24,358.35 per share with intraday gain of 0.98% or 236 points. Nestle India announced 2nd interim dividend of Rs 140/- per equity share of Rs 10/- each for the year 2023 along with share split in the ratio of 1:10. Meanwhile, Nestle India shares hit back-to-back 52-week high. Nestle shares traded 52-week high on October 20 and October 19 after Q3 results beat estimates.\

Nestle India declared its quarterly results on October 19. The company announced a surge of 37% in its consolidated net profit to Rs 908 crore for September quarter of FY 24 as against Rs 668.3 crore an year ago. Nestle India announced 2nd interim dividend of Rs 140/- per equity share of Rs 10/- each for the year 2023 along with share split in the ratio of 1:10. Check details below:

Nestle India Q3 Results: It announced a total revenue of Rs 5036 crore, up 9.6% as compared to Rs 4,601.8crore a year ago, as per the BSE filing issued today. Nestle India declared earnings before interest, taxes, depreciation, and amortization (EBITDA) at Rs 1,225 crore, up 21.3% as compared to Rs 1,009.6 crore declared an year ago. The 24.3% margin for the third quarter this year was 220 bps more than last year's 22.1% and and 90 bps more than street estimates of 23.4%.

Nestle India Stock Outlook & Return: Current market price of Nestle India share on BSE is Rs 24,368 at 12:45 pm with intraday gain of 1.02%. Its 52-week high price is Rs 24,735.50 per share and 52-week low price is Rs 17,888.00 per share, respectively. Nestle India has a market capitalisation of Rs 2,34,949.19 crore. Nestle India shares surged 3.70% in last 1-week, gained 19% in last 6-months, soared 22% in last 1-year, and offered a return of 50% in last 3-years.

Nestle Declares 2nd Interim Dividend: As per the regulatory filing dated Oct 19, "Declaration of Second Interim Dividend of Rs. 140/- (Rupees one hundred forty only) per equity share of Rs. 10/- each for the year 2023 on the entire issued, subscribed and paid-up share capital of the Company of 9,64,15,716 equity shares of the nominal value of Rs. 10/- (Rupees ten only) each. Second Interim Dividend for the year 2023 will be paid on and from 16th November 2023 to those members whose names appear in the Register of Members of the Company and as beneficial owners in the Depositories, as on the Record Date fixed for the purpose i.e., 1st November 2023, as already intimated to the Stock Exchanges vide our letter PKR:SG: 61:23 dated 3rd October 2023."

Nestle India Approves Stock Split/Sub-Division Of Shares: It announced in its BSE filing, "Sub-division/ split of each equity share of face value of Rs. 10/- (Rupees ten only) each, fully paid-up into 10 (ten) equity shares of face value of Re. 1 /- (Rupee one only) each, fully paid-up by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the Company to be sought by means of Postal Ballot. The Record Date for sub-division/ split of existing equity shares will be intimated in due course."

Valuation: According to Motilal Oswal's brokerage report dated October 20, "Nestle has a strong position in the domestic food market with an innovative product portfolio. It is focused on expanding out-of-home consumption and reaching rural markets, driving sustained double-digit earnings growth. Through substantial investments in capacity enhancement, brand support, and R&D initiatives, Nestle is well-positioned to capitalize on the vast opportunities in India's Packaged Foods segment, ensuring promising long-term revenue and earnings prospects. We value the company at 65x FY25E EPS to arrive at our TP of INR23,900. We reiterate our Neutral rating on the stock."

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The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.