Dividend Yield 1.30%: FMCG Giant Reports 7% Rise In Net Profit, PL Recommends Accumulate

Large cap FMCG giant Nestle India Ltd shares today declined 2.49% to settle at Rs 2480.40 per share on BSE. Nestle India Ltd on Thursday declared a jump of 6.91% year-on-year (YoY) in its net profit to Rs 746.60 crore for the quarter ended June 30, 2024 as compared to Rs 698.34 crore declared in the corresponding quarter of last year. Nestle India Ltd. shares slipped 5.52% in last 1-week and gained 8.99% in last 1-year. Its market capitalisation stood at Rs 2,39,149.54 crore. More details below:

Nestle India Q1 Results: As per the BSE filing of the company, Nestle India declared its revenue from operations at Rs 4813.95 crore, up 3.3% as against Rs 4658.53 crore reported in the corresponding quarter of last year. "I am pleased to share that despite external challenges such as lower consumption growth, concerns on continued food inflation and volatile commodity prices, we have delivered growth across our product groups. Almost a fourth of our growth has been mix and volume led, and we hope to strengthen this trend in the coming months," said Suresh Narayanan, Chairman and Managing Director at Nestle India.

"KITKAT delivered double digit growth. We take pride in confectionery being one of the most distributed businesses with highly connected digital brands and a slew of innovations in the pipeline. Milk Products and Nutrition portfolio-maintained growth," it said.

PL Recommends Accumulate Call: According to Prabhudas Lilladher, "Nestle results were below (ours/consensus) estimates. 3.3% Revenue growth was price-led with volume growth around 1%, we believe brands like Kitkat, Milkmaid and Nescafe have grown double digits while brands like Maggi, Infant Nutrition and Munch have been a drag. We believe sustaining this margin expansion is not possible given sharp increase in prices of both Cocoa and Coffee recently. The stock is trading at 59xJune26 EPS and has been consolidating from last two quarters. Retain Accumulate for LT gains."

Nestle India Share Performance: 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 2145.28 per share (as on 18/08/2023), respectively. Nestle India has a PE of 76.74, ROE of 95.67 and EPS OF 33.15. The large cap FMCG sector stock witnessed rally of 36% in last 3-years and 115% in last 5-years. Nestle India shares gained 380% in last 10-years.

Nestle India Dividend History: Nestle India Ltd. announced 71 dividends since May 31, 2001. In last 1-year, Nestle India announced an equity dividend amounting to Rs 158.25 per share. At the current share price of Rs 2480.40, Nestle India offers a dividend yield of 6.38%. Adjusting for Bonus/Splits, the dividend yield stood at 1.30%.

Nestle India Shareholding: Promoters holding remains unchanged at 62.76% in June 2024 quarter. FII/FPI have decreased holdings from 12.10% to 11.94% in June 2024 quarter. Number of FII/FPI investors decreased from 1000 to 984 in June 2024 quarter. Mutual Funds have decreased holdings from 4.45% to 4.37% in June 2024 quarter. Institutional Investors have increased holdings from 21.15% to 21.16% in June 2024 quarter.

LIC Stake: It is worth noting that Life Insurance Corporation of India (LIC) has 2.40% stake in Nestle India with 23,094,454 shares of the company.

Nestle India Stock Split History: Nestle India split the face value of its share once 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 as on January 5, 2024.

About: 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 Prabhudas Lilladher. 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.