Nestle India share price

 

INDIA

Shares of Nestle India Ltd took center stage in Friday's trading session, as the FMCG stock went ex-date for a stock split. Today also marks the record date for determining eligible shareholders who will benefit from this stock split. All shareholders of Nestle India whose names appear on the list at the end of today will be entitled to receive split shares.

In an October filing, Nestle India announced that its board had approved a sub-division/split of each equity share, transforming each share with a face value of Rs. 10/- into 10 equity shares with a face value of Re. 1/- each. This alteration of the Capital Clause of the Memorandum of Association of the Company was subject to the approval of the members through a Postal Ballot.

Nestle India has now set Friday, January 5 as the "Record Date" to determine the entitlement of equity shareholders for the sub-division/split of existing equity shares. This means that each fully paid-up equity share with a face value of Rs. 10 will be divided into 10 equity shares with a face value of Re. 1/- each, ranking equally in all aspects. This decision was approved by the shareholders through a Postal Ballot on December 8.

Looking ahead to the company's Q3 results, Kotak Institutional Equities anticipates strong revenue growth for Nestle India in the FMCG sector. They project a 9.7% year-on-year increase in revenue, driven by a 7% growth in volume and a 2.7% growth in pricing. It is worth noting that the previous year's volumes were affected by a significant price increase in Maggi LUP.

Kotak further predicts a 10.1% and 1.5% year-on-year growth in domestic and export revenues respectively. They expect the gross margin to remain relatively stable, with a slight sequential increase of 10 basis points to 56.6% (a 170 basis points increase year-on-year). This is partly attributed to deflation in edible oils, wheat, packaging, and dairy prices.

In terms of Ebitda margin, Kotak forecasts a decline of 65 basis points quarter-on-quarter, with Nestle India's margin expected to be at 23.8% for the period.