After reporting a 37% YoY increase in Q3 earnings, Nestle India's share price increases by 3% and reaches a new 52-week high

 After reporting a 37% YoY increase in Q3 earnings, Nestle India's share price increases by 3% and reaches a new 52-week high

In intraday trading on the BSE on Thursday, October 19, Nestle India's share price increased by approximately 3% to reach a new 52-week high after the release of the company's September quarter (Q3CY23) scorecard. In comparison to the previous finish of 23,269.65, the Nestle share price began at 23,279.90. It then increased by roughly 2.8% to reach its 52-week high of 23,915.95 on the BSE. The stock increased 2.69 percent to trade at 23,896.60 on the BSE at 12:30 p.m.

Nestle India announced a net profit of 908 crore for the three months ended in September 2023 during market hours on Thursday, up 37.27 percent from 661.46 crore in the same period the previous year. A one-time gain of 106.4 crore is included in the net profit for the quarter.

Revenue for the corporation climbed 9.5% to $5,036.8 billion in Q3CY23 from $4,601.8 billion the year before.

EBITDA increased 21.3% year over year during the July-September quarter, going from $1,009.6 crore to $1,225 crore. EBITDA margin dropped from 22.1 percent to 24.3 percent, or 220 basis points (bps), year over year.

Read more about Nestle India's third-quarter results: Net profit increases 37% year over year, board authorizes 140 dividend, and 1:10 stock split.

Additionally, Nestle India's board of directors declared the payment of a second interim dividend.

"The board of directors has announced a second interim dividend for 2023, which will be paid on and from November 16, 2023, at a rate of 140 rupees per equity share (face value: 10 rupees per equity share). In a statement with the market on Thursday, Nestle said that this was in addition to the first interim dividend of 27 per equity share that was paid on May 8, 2023.

Additionally, the board authorized the division of shares, or the splitting of existing fully paid up equity shares with a face value of 10 into ten (10) fully paid up equity shares with a face value of 1 rupee each, subject to the approval of the company's shareholders.

The stock is seen as a "accumulate" by Amnish Aggarwal, Head of Research at Prabhudas Lilladher Pvt Ltd.

In the present environment (low single-digit growth statistics expected from the industry), Nestle produced a good set of results. Low single-digit volume increase is what we predict. In the next quarters, we anticipate stable commodity prices, which will prevent a significant margin growth from the high levels of 3Q23. Given its great volume growth visibility and under-indexation in rural and small towns in India, Nestle continues to be a popular choice, according to Aggarwal.