Shares of Nestle India surged 4 per cent to Rs 20,229.95 on the BSE in Monday’s otherwise weak intra-day trade ahead of its record date of Friday, April 21 for a dividend of Rs 102 per share. In comparison, the S&P BSE Sensex was down 1.1 per cent at 59,764 at 11:48 am.
The stock of the packaged foods was trading close to its 52-week high level of Rs 21,053, touched on October 24, 2022. It has recovered 12 per cent from Rs 18,002.80 on March 15, 2023.
“Interim Dividend for the year 2023 will be paid on and from May 8, 2023 along-with the final dividend for the year 2022, if approved by the members at the 64th Annual General Meeting scheduled to be held on April 12, 2023, to those members whose names appear in the Register of Members of the Company and as beneficial owner in the records of the depository, as on the Record Date fixed for the aforesaid purpose i.e. April 21, 2023,” Nestle India said in exchange filing on April 12.
The company will continue to benefit from its leading market position in the key FMCG segments, healthy operating efficiency and strong parent support. The financial risk profile is expected to remain healthy over the medium term, supported by adequate cash flow and healthy capital structure, according to rating agency Crisil.
Meanwhile, in January-March quarter (Q1CY23), Nestlé India is expected to maintain strong growth momentum with 12.8 per cent sales growth led by mix of volume & pricing growth. Maggi noodles & chocolate categories are expected to grow at faster pace but milk & related product categories to see moderate sales given high milk prices are adversely impacting growth.
Analysts at ICICI Securities estimate gross margin contraction of 173 bps in Q1CY23. Operating profit is estimated to grow 3.9 per cent with a contraction of 186 bps in operating margins to 21.5 per cent. The brokerage firm estimates 7.7 per cent growth in net profit to Rs 640.3 crore.