Rs 8.50/Share Dividend Recommended: Nestle India Reports 27% YoY Jump In Profit

Large cap FMCG giant Nestle India Ltd on Thursday declared a jump of 27% year-on-year (YoY) in its net profit to Rs 934 crore for the quarter ended March 31, 2024 as against the net profit of Rs 737 crore declared in the corresponding quarter of last year. The Board of Directors of Nestle India Ltd recommended a final dividend of Rs 8.50/share of Re 1/- each. Current market price of Nestle India share on BSE is Rs 2551.0 per share with intraday gain of 1.95%. The company has a market capitalisation of Rs 2,46,130.04 crore. More details below:

Nestle India Recommends Dividend: As per the regulatory filing of the company dated today, "recommended Final Dividend of Rs. 8.50/- (Eight Rupees and Fifty Paisa only) per equity shares of Re. 1/- each for the fifteen months financial year ended 31st March 2024 on the entire issued, subscribed and paid-up share capital of the Company of 964,157,160 equity shares of nominal value of Re. 1/- (Rupee one only) each."

Nestle India Financial Results: The FMCG major declared its revenue from operations for the quarter ended March 31, 2024 at Rs 5,268 crore, up 9% as against Rs 4830 crore declared in the year ago period. The surge is due to higher pricing along with demand for its packaged food items. Nestle declared a rise in its earnings before interest, taxes, depreciation and amortisation (EBITDA) by 21.8% to Rs 1,337.7 crore as compared to Rs 1,098,7 crore. The company said the EBITDA margin improved by 270 basis points (bps) to 25.4% from 22.7%, YoY.

Suresh Narayanan, Chairman and Managing Director, Nestle India, said, "I am pleased to share that we have delivered double-digit growth, despite challenges posed by rising food inflation and volatile commodity prices. We have witnessed a strong growth momentum across our product portfolio led by a combination of pricing and mix."

LIC Stake: It is worth noting that Life Insurance Corporation of India (LIC) has 1.84% stake in Nestle India with 1,778,769 shares of the company.

Joint Venture: As per the regulatory filing of the company, "approved execution of a definitive agreement to form a joint venture between the Company and Dr. Reddy's Laboratories Limited ("Dr. Reddy's") to bring together the well-known global range of nutritional health solutions as well as vitamins, minerals and health supplements of Nestlé Health Science with the nutraceuticals portfolios, strong and established commercial strengths of Dr. Reddy's in India and other geographies as may be agreed by the Parties. The joint venture is expected to become operational in the second quarter of the financial year 2024-25, subject to customary closing conditions."

Nestle India Share Performance & Return: The 52-week high price of Nestle India share on BSE is Rs 2770.75 per share (as on 02/01/2024) and 52-week low price is Rs 2048.56 per share (as on 26/04/2023). Nestle India has a market cap of Rs 2,42,133,61 crore. Nestle India shares rallied 1.89% in last 1-week, declined over 8% year-to-date, soared 21% in last 1-year, and gave return of 38% in last 2-years. In last 5-years, Nestle India shares jumped 130%.

Should You Buy Nestle India Shares? Leading International brokerage firm Citi has maintained buy call with target price of Rs 2900 per share adding the company's long-term outlook remains intact and its dominant brands will continue to lead growth.

Nestle India Stock Split History: Nestle India split the face value of its shares once since January 5, 2024. Nestle India last split face value of its shares from Rs 10 to Re 1 in 2024.The share traded ex-split from January 5, 2024, according to Trendlyne.

Nestle India Technical: Score is 49.8 indicating the stock is technically neutral. Stocks with score above 70 are considered as technically strong and below 35 are considered weak. RSI is 45.9, RSI below 30 is considered oversold and above 70 overbought. MFI is 43.4, MFI below 30 is considered oversold and above 70 overbought, according to Trendlyne.

About Nestle India: Nestle India is a subsidiary of Nestle S.A. of Switzerland. With eight factories and a large number of co-packers, Nestle India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Choice Broking. 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.