Nestle India share price extended gains to hit a fresh record high on Friday after the company reported strong earnings for the quarter ended September 2023. Nestle India shares rallied as much as 1.90% to ₹24,580.35 apiece on the BSE.
Nestle India share price excels with a 37.27% Profit Growth for Q3 2023.
The FMCG behemoth Nestle India has announced a stunning 37.27% increase in its net profit for the quarter ending September 2023, going from 661.46 crores in the same quarter last year to 908 crores.
The company’s revenue in Q3CY23 increased by 9.5% to $5,036.8 crores from $4,601.8 crores in the similar quarter last year.
The EBITDA margin increased from 22.1% to 24.3%, and the quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 21.3% to 1,225 crores from 1,009.6 crores.
The board of directors of Nestle India Share Price has approved a 1:10 share split as well as a second interim dividend of 140 rupees per equity share for the year 2023.
Brokerage firms continue to have high expectations for Nestle India’s success. Here are some of their comments:
Motilal Oswal: Nestle, which has a significant position in the domestic food industry, has consistently experienced double-digit revenue growth as a result of its focus on boosting out-of-home consumption and expanding into rural areas. According to Motilal Oswal Financial Services, Nestle India is in a good position to take advantage of major potential in the packaged food market through capacity expansion, brand backing, and adequate investment in R&D. This would provide sustainable long-term revenue and earnings prospects.
The stock has a ‘Neutral’ rating and a share price objective of $23,900.
Nestle’s Q3CY23 EBITDA and PAT climbed by 21.3% and 37.3%, respectively, exceeding both market and our expectations, according to Nomura Institutional Equities. Although significantly less than expected, the quarter’s 9.5% revenue growth. Nomura Institutional Equities expects volume to increase by about 5%. Volume, quantity, and pricing factors combined to produce significant expansion.
One of the most popular brokerage companies is Nestle India. With a revised target price of 29,165 per share, up from the prior 25,810, they have issued a “Buy” call.
Shares of Nestle India were up 1.74% as of 9:35 AM, trading at 24,542.75 on the BSE.
Nestle India Share Price Remarkable Growth in Q3 2023
The spectacular performance of Nestle India during the third quarter of 2023 demonstrates the company’s strong position in the market and its capacity to seize growth opportunities, giving it an appealing investment opportunity.
Nestle India’s domestic sales increased by a sizable 10.3% in the third quarter of 2023. A number of elements, including a successful product mix, higher volume, and price optimization, can be credited for this accomplishment.
The Chairman and Managing Director of Nestle India, Suresh Narayanan, appreciated the importance of this milestone and noted that the business has achieved a historic revenue milestone of 5,000 crores for the first time in any quarter.
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However, Nestle India has issued a warning that uncertain climatic conditions, including uneven rainfall and droughts, may provide difficulties in the future. Such climatic elements may have an effect on the pricing of important goods like maize, sugar, sesame, and spices by impacting their production.
