October 4, 2023: Shares of Nestle India rallied over 4% on Wednesday after the company announced that its board of directors will consider a stock split and an interim dividend at its meeting on October 19, 2023.
The stock split, if approved, would be the first by Nestle India since 2010. The interim dividend, if declared, would be the second for the company in the current financial year.
Nestle India is one of the largest food and beverage companies in India. It is known for its popular brands such as Maggi noodles, KitKat chocolate, and Nescafe coffee.
The company has been performing well in recent quarters. In the first quarter of the current financial year, Nestle India reported a 14% increase in net sales and a 17% increase in net profit.
The stock split and interim dividend news was welcomed by investors. The stock’s price closed at Rs 23,333.65 on Wednesday, up 4.45% from the previous day’s close.
Analysts’ Views
Analysts believe that the stock split and interim dividend news are positive for Nestle India shareholders. The stock split will make the stock more affordable for retail investors, while the interim dividend will reward shareholders for their investment.
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Analysts also believe that the company’s strong performance is likely to continue in the coming quarters. The company is well-positioned to benefit from the growing demand for food and beverage products in India.
Overall, the news of the stock split and interim dividend is likely to boost investor sentiment towards Nestle India shares. The company remains a well-managed company with a strong brand portfolio. Investors who are looking for a long-term investment in the food and beverage sector may want to consider Nestle India shares.
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