Nestle India Shares Hit Record High
The Indian subsidiary of Swiss Nestle SA rose as much as 1.7 percent on NSE (National Stock Exchange) to a record high of Rs 10,060.45 around 9:30 am on Monday crossing the Rs 10,000 mark for the first time.
Shares of Nestle India have been on the ‘buy’ ratings for a while now after it reported a higher than expected profit of Rs 424.03 crore in its March 2018 ended quarter. It was a 35.98 percent jump in profit as per a BSE (Bombay Stock Exchange) filing. It outperformed its peers in consumer goods like Dabur India, Enami, Marico and Godrej Consumer Products in terms of March quarter numbers.
Analysts at Jefferies India Ltd said that Nestle’s sales growth was due to gain in sales from a large volume growth of 10-11 percent. It also said that new launches and a gain in market share also helped the company achieve double-digit volume growth.
The company also announced its entry into the Indian breakfast cereal segment from a 50:50 joint venture between Nestle and General Mills which already distribute their products like Cheerios internationally.
On the other hand, Nestle India CMD says Timely monsoon this year to help spur growth, “The monsoon at least this year, seems to be on time. We are an agro-based economy by large, and to that extent, it augurs well…We look forward to the stability of demand and hopefully better growth,” Narayanan told PTI. The India Meteorological Department (IMD) has predicted an average monsoon this year, which has already hit the Indian coast.
While referring to the recent big-ticket investments in e-commerce space, he said this channel would improve and grow further in coming years. “We welcome the opening of newer channels… Together with the strengthening of backward linkages into the agrarian economy, we should see improvement in the overall pace of business and also the contribution to the business,” Nestle India CMD Suresh Narayanan said.