Nestle India shares turn ex-date for stock split; FMCG stock reacts
Nestle India stock split: All shareholders of Nestle India with their names in the list at the end of record date, i.e. today, will be eligible to receive split shares.
- Jan 5, 2024,
- Updated Jan 5, 2024 1:04 PM IST
Shares of Nestle India Ltd were in focus in Friday's trade, as the FMCG stock turned ex-date for stock split today. Today is also the record date for for the purpose of determining Nestle India shareholders, who are eligible for the stock split. All shareholders of Nestle India with their names in the list at the end of record date, i.e. today, will be eligible to receive split shares.
In an October filing, Nestle India said its board approved: "Sub-division/ split of each equity share of face value of Rs. 10/- (Rupees ten only) each, fully paid-up into 10 (ten) equity shares of face value of Re. 1 /- (Rupee one only) each, fully paid-up by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the company to be sought by means of Postal Ballot."
Nestle India later fixed Friday, January 5 as the “record date” for determining entitlement of equity shareholders for the purpose of sub-division/ split of existing equity shares of the company, such that one equity share having face value of Rs 10 each, fully paid-up, will be sub-divided into 10 (ten) equity shares having face value of Re 1 each, fully paid-up, ranking pari-passu in all respects which was approved by shareholders through Postal Ballot on December 8.
Nestle India Q3 results preview
In its December quarter preview note, Kotak Institutional Equities said the FMCG firm is well-placed to deliver strong revenue growth (9.7 per cent YoY) in the FMCG pack, led by 7 per cent volume and 2.7 per cent pricing growth. To be sure, the base quarter volumes were impacted by steep price increase in Maggi LUP.
"We model 10.1 per cent/1.5 per cent YoY growth in domestic/export revenues. We expect GM to be broadly flattish sequentially(up 10 bps QoQ) at 56.6 per cent (170 bps YoY), partly aided by deflation in edible oils, wheat, packaging and dairy prices," Kotak said.
Kotak expects Ebitda margin for Nestle India to come in at 23.8 epr cent down 65 basis points QoQ, up 80 bps YoY, as increased A&P spends offset gross margin expansion.
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Also read: Stock recommendations by market analysts for January 5, 2024: Canara Bank, CDSL and REC
Shares of Nestle India Ltd were in focus in Friday's trade, as the FMCG stock turned ex-date for stock split today. Today is also the record date for for the purpose of determining Nestle India shareholders, who are eligible for the stock split. All shareholders of Nestle India with their names in the list at the end of record date, i.e. today, will be eligible to receive split shares.
In an October filing, Nestle India said its board approved: "Sub-division/ split of each equity share of face value of Rs. 10/- (Rupees ten only) each, fully paid-up into 10 (ten) equity shares of face value of Re. 1 /- (Rupee one only) each, fully paid-up by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the company to be sought by means of Postal Ballot."
Nestle India later fixed Friday, January 5 as the “record date” for determining entitlement of equity shareholders for the purpose of sub-division/ split of existing equity shares of the company, such that one equity share having face value of Rs 10 each, fully paid-up, will be sub-divided into 10 (ten) equity shares having face value of Re 1 each, fully paid-up, ranking pari-passu in all respects which was approved by shareholders through Postal Ballot on December 8.
Nestle India Q3 results preview
In its December quarter preview note, Kotak Institutional Equities said the FMCG firm is well-placed to deliver strong revenue growth (9.7 per cent YoY) in the FMCG pack, led by 7 per cent volume and 2.7 per cent pricing growth. To be sure, the base quarter volumes were impacted by steep price increase in Maggi LUP.
"We model 10.1 per cent/1.5 per cent YoY growth in domestic/export revenues. We expect GM to be broadly flattish sequentially(up 10 bps QoQ) at 56.6 per cent (170 bps YoY), partly aided by deflation in edible oils, wheat, packaging and dairy prices," Kotak said.
Kotak expects Ebitda margin for Nestle India to come in at 23.8 epr cent down 65 basis points QoQ, up 80 bps YoY, as increased A&P spends offset gross margin expansion.
Also read: Stocks to watch out for today: Grasim Industries, Macrotech Developers, Coforge, Sobha and more
Also read: Stock recommendations by market analysts for January 5, 2024: Canara Bank, CDSL and REC