Nestle India board to consider stock split

1 min read 03 Oct 2023, 09:54 PM IST Join us

Suneera Tandon

The company said will also declare its second interim dividend for 2023, if any, at its board meeting this month

On Tuesday Nestle India’s scrip was trading 0.64% down at ₹22,349.95 on BSE

New Delhi: Fast moving consumer goods company Nestle India will declare its second interim dividend for 2023, if any, while also considering a stock split at its board meeting later this month.

In a filing with the exchanges on Tuesday, the company said a meeting of the board of directors is scheduled for Thursday, 19 October, to consider the financial results of the company for the third quarter and the nine months to 30 September.

The company's regulatory filing also mentioned a potential stock split. “This is to inform you that at the said meeting, the board of directors will also consider the following proposals: declaration of a second interim dividend for the year 2023, if any. Intimation of the record date in this regard is enclosed with this letter. Second interim dividend for the year 2023, in case declared, shall be paid on and from 16th November 2023; and alteration in the share capital of the company by sub-division or split of existing equity shares having face value of ₹10 each, fully paid up, as may be determined by the Board of Directors," it said.

On Tuesday Nestle India’s scrip was trading 0.64% down at ₹22,349.95 on BSE. For calendar year 2022 the company reported total sales of ₹16,790 crore and a net profit of ₹2,390 crore. In 2022 the company had declared a total dividend of ₹220 per equity share. Nestle sells noodles, coffee, chocolates, packaged milk and baby formula, among other things.

Last week analysts at brokerage UBS downgraded their rating on Nestle India to ‘neutral’ from ‘buy’ as they saw limited upside. The brokerage, however, raised the target price of the stock from ₹23,000 to ₹24,500, implying a potential upside of up to 7%, and said it remains optimistic about Nestle India’s long-term revenue and volume growth.

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ABOUT THE AUTHOR

Suneera Tandon

Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.