1:10 Stock Split: Large Cap Stock Spurts 3.16% After First-Ever Stock Split

Shares of large cap FMCG sector stock, Nestle India shares recorded a surge of 3.16% after announcing first ever stock split in the ratio of 1:10 on October 19. The company also announced its quarterly results on October 19 declaring a rise of 37% in its consolidated net profit to Rs 908 crore for Q3 as compared to Rs 668.3 crore an year ago. Board of Nestle recommended second interim dividend of Rs Rs 140/- per equity share of Rs 10/- each for the year 2023 on October 19 and fixed November 1, 2023 as record date.

Nestle Shares Rally Over 3% In 2-Days After First-Ever Stock Split: Nestle stock was priced Rs 23,524.00 per share on October 19, 2023 on BSE and last trading price of Nestle as on October 19 surged to Rs 24,266.60 in just 2-days span. Nestle Shares gained 5.89% in last 2-weeks and soared 24% year-to-date. Nestle stock soared 21% in last 1-year, gained 49% in last 3-years, and jumped 339% in last 10 years. The company has a market capitalisation of Rs 2,33,968.16 crore

Nestle EPS & PE: Nestle has the highest EPS of 264.31 when compared with its peer of Britannia (88.82), Bikaji (1.47), and DIAMONDYD (8.38). Nestle's PE ratio is 91.81 when compared with Britannia's 51.54, Bikaji's 111.31, and DIAMONDYD's 103.41. A higher EPS reflects higher value as investors will pay more for a company's shares if they think the company has higher profits relative to its share price. A high P/E could signal that stock's price is high relative to earnings and likely overvalued.

Nestle Declared Sub-Division of Shares: According to the BSE filing of Nestle dated October 19, 2023, "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."

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%.

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The stock just highlights the stock split and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.