1:10 Split, Rs 249/Share Dividend: FMCG Stock To Consider Dividend For FY 23-24; Buy Or Sell?

Large cap FMCG giant Nestle India Ltd will hold its meeting of Board of Directors on April 25 to consider and recommend final dividend for financial year 2023-24, if any. Current market price of Nestle India Ltd share on BSE is Rs 2558.65 per share with intraday gain of 0.89% at the time of writing the story. The FMCG company has a market capitalisation of Rs 2,46,279.48 crore. Nestle India shares soared over 2% in last 1-week and gained 31% in last 1-year. However, Nestle India stock declined 6.90% year-to-date. The stock witnessed decline after reporting weaker than expected results on February 7, 2024 and warned of sluggish growth in sales in 2024 because higher prices compel shopper to restrict spending. Meanwhile, 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. More details below:

Nestle India To Consider Final Dividend: According to the regulatory filing of Nestle issued on April 11, 2024, the Board Meeting has been scheduled on 25th April 2024. The Board of Directors will consider recommendation of final dividend for the financial year 2023-24, if any, for the approval of the members at the ensuing Annual General Meeting.

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 1952.90 per share (as on 17/04/2023). Nestle India shares declined 2.30% in last 1-month, soared over 8% in last 6-months, gave return of 51% in last 3-years, and offered rally of 132% in last 5-years.

Should You Buy Nestle India Shares? Leading brokerage firm Sumeet Bagadia of Choice Broking has recommended buy call to Nestle India shares. Nestle India share price target according to the Bagadia is Rs 2650 per share with stop loss to be maintained at Rs 2465 per share. The analyst has suggested traders to buy the stock at Rs 2536 price range.

According to the analyst, Nestle India share price, presently trading at Rs 2536.20 levels, indicates a strong support zone within the range of Rs 2465 to Rs 2490 levels, validating its resilience during market fluctuations. Nestle India recently reflected a remarkable bounce-back from these support levels, affirming investor confidence in its underlying strength. Further analysis discloses a possible resistance barrier near Rs 2570 levels, coinciding with its 20-day Exponential Moving Average (EMA). A breakthrough above this resistance could catalyze a significant upward movement, with a target price projection extending to Rs 2650 levels.

Nestle India Dividend History: Nestle India announced 69 dividends since May 31, 2001. In last 12 months, the FMCG company announced an equity dividend amounting to Rs 249.00 per share. At the current share price of Rs 2558.65, Nestle India offers a dividend yield of 9.78%. Adjusting for Bonus/Splits the dividend yield is 1.22%.

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 48.58 indicating the stock is technically neutral. Stocks with score above 70 are considered as technically strong and below 35 are considered weak. RSI is 47.4, RSI below 30 is considered oversold and above 70 overbought. MFI is 55.8, MFI below 30 is considered oversold and above 70 overbought, according to Trendlyne.

Nestle India Q4 Results: The company announced 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.

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 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.