Why this multibagger FMCG stock is showing 50% fall today in some apps today
Nestle India ex-bonus: The multibagger FMCG stock is showing up to 50 per cent fall in some trading apps today as all these the shares turned ex-bonus, adjusting to the corporate action.
- Aug 8, 2025,
- Updated Aug 8, 2025 9:20 AM IST
Nestle India ex-bonus: Mutlibagger FMCG stock Nestle India is showing up to 50 per cent fall in some trading apps today as all these the shares turned ex-bonus, adjusting to the pre-announced corporate action. The company had announced to issue bonus stocks for the eligible shareholders in 1:1 ratio, which is indicating a sharp downside in its stock price.
Nestle India had announced to issue 96,41,57,160 bonus shares with a face value of Re 1 each, fixing Friday, August 08 as the record date to determine the eligibility for the same. The company announced Monday, August 11, as the deemed date of allotment and the effective listing of the bonus shall be done on Tuesday, August 12.
Nestle India has issued one share with a face value of Re 1 each for every one share held with a face value of Re 1 each held as on the record date. Only those shareholders who hold the stock as of the record date will be eligible to receive the bonus shares of Nestle India. Investors buying the stock on or after the record date will not be considered eligible.
Shares of Nestle India settled at Rs 2235.60 on Thursday and opened at Rs 1124.95 on Friday, post the adjustment of 1:1 bonus. It is possible that trading apps of certain brokerages might be showing the unadjusted share price for yesterday and, thus, suggesting an up 49-50 per cent-odd fall on the counter.
Post adjustment of bonus issue, shares of Nestle India remained rangebound on Friday, with its total market capitalization holding firm at Rs 2.16 lakh crore mark. The stock has tumbled nearly 19 per cent from its adjusted 52-week high at Rs 1388.5, hit in September 2024. The stock zoomed nearly 600 per cent in the last six years.
Promoters own 36.70 per cent stake in the company, while public investors own 62.76 per cent stake as of June 30, 2025, while public shareholding stood at 37.24 per cent. LIC owns 5.25 per cent, stale while mutual funds, banks and insurance companies held 10.59 per cent stake in it. More than 12.02 crore retail investors own about 12.47 per cent stake in Nestle India as of Q1FY26.
Maggi-maker Nestle India posted a 13.4 per cent year-on-year (YoY) decline in consolidated profit after tax (PAT) to Rs 647 crore in the June 2025 quarter. Its revenue from operations rose 6 per cent YoY to Rs 5,096 crore, Domestic sales rose 5.5 per cent YoY, coming in at Rs 4,860 crore for the quarter.
The powdered and liquid beverages category achieved strong double-digit growth during the quarter. NESCAFÉ gained additional market share, further solidifying its leadership in the coffee category. It expects coffee, cocoa and edible oil prices to remain stable, while that of milk to decrease due to a favourable monsoon and flush season, said Geojit Financial Services.
"Rurban markets have shown promising growth, indicating a positive shift in market trends. Although profit during the quarter was impacted by higher consumption prices and operational costs, these are expected to stabilize in the near future. Therefore, we upgrade our rating to 'buy' from 'hold' with a revised target price of Rs 2,550," it added ahead of bonus issue.
Nirmal Bang Institutional Equities expects Nestle to gradually resume double digit revenue growth going forward and margin recovery is also likely to be gradual. This, along with substantial miss over forecasts in 1QFY26, has led to 11 per cent and 6 per cent reduction in FY26E and FY27E EPS, respectively, it said.
"We remain constructive on the packaged foods growth opportunity in India and Nestle has been at the forefront of driving growth in the past decade. Expensive valuations of 61 times FY27E EPS make us maintain our 'hold' rating on the stock," Nirmal Bang added with a target price of 2,245.
ICICI Securities models revenue, Ebitda and net profit CAGR of 10 per cent, 10 per cent and 13 per cent over FY25-27E. It maintained a 'hold' with a DCF-based target price of Rs 2,400. The brokerage has citied faster-than0anticipated recovery in demand environment, as key upside risk, while higher-than-expected inflation in key raw material prices is key downside risk.
Among other brokerage firms, JM Financial and Antique Stock Broking also have a 'hold' rating on Nestle India shares with a target prices of Rs 2,290 and Rs 2,420, respectively. However, Nuvama Institutional Equities and Axis Securities have a 'buy' rating on the stock with a target price of Rs 2,820 and Rs 2,580 apiece.
Nestle India ex-bonus: Mutlibagger FMCG stock Nestle India is showing up to 50 per cent fall in some trading apps today as all these the shares turned ex-bonus, adjusting to the pre-announced corporate action. The company had announced to issue bonus stocks for the eligible shareholders in 1:1 ratio, which is indicating a sharp downside in its stock price.
Nestle India had announced to issue 96,41,57,160 bonus shares with a face value of Re 1 each, fixing Friday, August 08 as the record date to determine the eligibility for the same. The company announced Monday, August 11, as the deemed date of allotment and the effective listing of the bonus shall be done on Tuesday, August 12.
Nestle India has issued one share with a face value of Re 1 each for every one share held with a face value of Re 1 each held as on the record date. Only those shareholders who hold the stock as of the record date will be eligible to receive the bonus shares of Nestle India. Investors buying the stock on or after the record date will not be considered eligible.
Shares of Nestle India settled at Rs 2235.60 on Thursday and opened at Rs 1124.95 on Friday, post the adjustment of 1:1 bonus. It is possible that trading apps of certain brokerages might be showing the unadjusted share price for yesterday and, thus, suggesting an up 49-50 per cent-odd fall on the counter.
Post adjustment of bonus issue, shares of Nestle India remained rangebound on Friday, with its total market capitalization holding firm at Rs 2.16 lakh crore mark. The stock has tumbled nearly 19 per cent from its adjusted 52-week high at Rs 1388.5, hit in September 2024. The stock zoomed nearly 600 per cent in the last six years.
Promoters own 36.70 per cent stake in the company, while public investors own 62.76 per cent stake as of June 30, 2025, while public shareholding stood at 37.24 per cent. LIC owns 5.25 per cent, stale while mutual funds, banks and insurance companies held 10.59 per cent stake in it. More than 12.02 crore retail investors own about 12.47 per cent stake in Nestle India as of Q1FY26.
Maggi-maker Nestle India posted a 13.4 per cent year-on-year (YoY) decline in consolidated profit after tax (PAT) to Rs 647 crore in the June 2025 quarter. Its revenue from operations rose 6 per cent YoY to Rs 5,096 crore, Domestic sales rose 5.5 per cent YoY, coming in at Rs 4,860 crore for the quarter.
The powdered and liquid beverages category achieved strong double-digit growth during the quarter. NESCAFÉ gained additional market share, further solidifying its leadership in the coffee category. It expects coffee, cocoa and edible oil prices to remain stable, while that of milk to decrease due to a favourable monsoon and flush season, said Geojit Financial Services.
"Rurban markets have shown promising growth, indicating a positive shift in market trends. Although profit during the quarter was impacted by higher consumption prices and operational costs, these are expected to stabilize in the near future. Therefore, we upgrade our rating to 'buy' from 'hold' with a revised target price of Rs 2,550," it added ahead of bonus issue.
Nirmal Bang Institutional Equities expects Nestle to gradually resume double digit revenue growth going forward and margin recovery is also likely to be gradual. This, along with substantial miss over forecasts in 1QFY26, has led to 11 per cent and 6 per cent reduction in FY26E and FY27E EPS, respectively, it said.
"We remain constructive on the packaged foods growth opportunity in India and Nestle has been at the forefront of driving growth in the past decade. Expensive valuations of 61 times FY27E EPS make us maintain our 'hold' rating on the stock," Nirmal Bang added with a target price of 2,245.
ICICI Securities models revenue, Ebitda and net profit CAGR of 10 per cent, 10 per cent and 13 per cent over FY25-27E. It maintained a 'hold' with a DCF-based target price of Rs 2,400. The brokerage has citied faster-than0anticipated recovery in demand environment, as key upside risk, while higher-than-expected inflation in key raw material prices is key downside risk.
Among other brokerage firms, JM Financial and Antique Stock Broking also have a 'hold' rating on Nestle India shares with a target prices of Rs 2,290 and Rs 2,420, respectively. However, Nuvama Institutional Equities and Axis Securities have a 'buy' rating on the stock with a target price of Rs 2,820 and Rs 2,580 apiece.