Good time to add Maggi, KitKat maker to your portfolio? What analysts make of Nestle India results, stock split

Nestle India Q3 results, Nestle India stock split, Nestle India dividend 2023: Consumer products company Nestle India took centre stage on Dalal Street as brokerages largely remained positive on the stock after the company reported a strong set of financial results for the July-September period.

Nestle India share price NSE: Nestle India shares soared to a fresh record high on Friday, extending a rally that began during market hours the previous day following its announcements. Image: Reuters/ Representational image

Nestle India share price NSE, Nestle India Q3 results, Nestle India stock split, Nestle India dividend 2023: Consumer products company Nestle India—whose popular products include Maggi instant noodles—took centre stage on Dalal Street as brokerages largely remained positive on the stock after the company reported a strong set of financial results for the July-September period, announced a share split plan, and declared a dividend.

Nestle India shares soared to a fresh record high on Friday, extending a rally that began during market hours the previous day following its announcements. Nestle India shares on Friday, October 20 gained as much as 2.5 per cent touch fresh record high of Rs 24,745 on NSE. The counter finished at Rs 24,282, up by Rs 149.65 or 0.62 per cent on NSE.

However, Nestle India posted lower-than-expected nine-month sales growth as higher product prices made shoppers balk, but said it expects volumes to turn positive again by the end of the year.

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Here's how the counter moved on Friday, october 20:

Source: NSE

Here’s a summary of Nestle India’s Q3 results

The consumer products company reported a 37.3 per cent year-on-year jump in net profit to Rs 908.1 crore for the quarter ended September 30, driven by a rise in demand. It registered 9.4 per cent growth in total product sales to Rs 5,009.5 crore for the September quarter, boosted by 10.3 per cent growth in domestic sales, and posted an increase of 9.5 per cent in quarterly revenue to Rs 5,036.8 crore, according to a regulatory filing. According to Zee Business research, the company was estimated to report a quarterly net profit of Rs 768 crore and revenue of Rs 5,028 crore for the quarter under review. Read more

The company’s board approved a proposal to split the stock in the ratio of 1:10 as well as an interim dividend of Rs 140 per share.

Here's what brokerages make of the Nestle India's Q3 results and other announcements:

Nestle India
Brokerage	Rating	Target (INR)
Morgan Stanley	Underweight	18910
JP Morgan	Overweight	23800
Jefferies	Hold	20600
Citi	Buy	26500
Goldman Sachs	Neutral	24000
Nomura	Buy	28100
Macquarie	Neutral	22700

Morgan Stanley maintained an ‘underweight’ call on Nestle India and raised its price target for the stock by Rs 1,676 to Rs 18,910. According to the brokerage, sustained double-digit domestic topline growth lagged its estimates, though by a thin margin, for the seventh quarter in a row.

Jefferies, which maintained a ‘hold’ rating with a raised target of Rs 20,600 instead of the Rs 19,900 earlier, said the company’s third straight quarter of 20 per cent growth in EBITDA came despite a slight miss on the revenues front as its gross margin expanded smartly.

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