1:10 Stock Split, Rs 7/Share Dividend: Axis Securities Has Buy Call On FMCG Stock, TP Rs 2880

Brokerage house Axis Securities is upbeat on large cap FMCG giant Nestle India shares and assigned buy call with target price of Rs 2880 apiece. Current market price of Nestle India shares on BSE is Rs is Rs 2598.10 apiece. If you buy Nestle India stock at last trading price of Rs 2598.10 apiece, you can get potential gain of 10.85%. Nestle India announced its maiden stock split in the ratio of 1:10 and shares traded ex-split on January 5, 2024. Board of Directors of the FMCG giant declared third interim dividend of Rs 7/- per equity share of the face value of Re 1/- each for the FY 2023-24 and shares traded ex-dividend on Feb 15, 2024. Nestle India shares offered return of 20% in last 6-months and over 40% return in last 1-year. Check details below:

Nestle India Dividend History: Nestle India announced 69 dividends since May 31, 2001. In last 12 months period, Nestle India announced an equity dividend amounting to Rs 249.00 per share. At the current share price of Rs 2598.10, Nestle India offers dividend yield at 9.58%. Adjusting for Bonus/Splits the dividend yield is 1.20%, according to Trendlyne.

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

Nestle India Shares Performance & Return: The 52-week high price of Nestle India shares on BSE is Rs 2770.75 apiece and 52-week low price is Rs 1788.80 apiece, respectively. The company has a market capitalisation of Rs 2,50,680.86 crore. Nestle India shares zoomed over 3% in last 2-weeks, declined 5% year-to-date, rallied 40% in last 2-years, and offered return of 149% in last 5-years. In last 10-years, Nestle India stock zoomed 452%. Nestle India has ROE of 104.97, PE of 8.36, and EPS (TTM) of 311.01, as per BSE data.

Nestle India Q4 Results: Nestle declared its net profit at Rs 655.6 crore for the quarter ended December 31, 2023, up 4.4% year-on-year (YoY) as compared to Rs 628 crore in the corresponding quarter of last year. Meanwhile, revenue from operations declared at Rs 4584 crore, up 8% year-on-year (YoY) for the fourth quarter. Nestle India follows January-December financial year. The company's Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) announced at Rs 1077 crore for the quarter under review, up 10.2% from the similar quarter last year. Gross margins surged 50 bps to 23.4% as against 22.9% in Q4FY23.

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%

About Nestle India: NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and a large number of co-packers, Nestlé 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 just highlights the Q4 results, dividend 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.