News

Published: October 5, 2023
Updated: October 5, 2023

Nestle India Considers Stock Split and Second Interim Dividend for 2023

Big Moves Ahead for Nestle India

In an exciting turn of events, Nestle India, a renowned fast-moving consumer goods company, is gearing up for some significant decisions at its upcoming board meeting scheduled for Thursday, 19 October. The agenda for this meeting includes reviewing the financial results for the third quarter of 2023 and the cumulative performance for the nine months ending on 30 September.

Stock Split on the Horizon

One of the most anticipated discussions during this meeting pertains to a potential stock split. Nestle India is contemplating an alteration in its share capital by sub-dividing or splitting its existing equity shares, each having a face value of ₹10. The exact details of this stock split will be determined by the Board of Directors. Such a move can often lead to increased accessibility and liquidity for investors, making it an intriguing development.

Second Interim Dividend in the Works

Additionally, Nestle India will address the possibility of declaring a second interim dividend for the year 2023. The company's commitment to its shareholders is evident in this proposal. If approved, the second interim dividend is scheduled to be paid out starting from 16th November 2023. This news can be especially attractive to investors looking for consistent returns.

Current Market Status

As of Tuesday, Nestle India's stock was trading at ₹22,349.95 on the Bombay Stock Exchange, marking a slight decrease of 0.64%. In 2022, the company reported impressive figures, with total sales reaching ₹16,790 crore and a net profit of ₹2,390 crore. The company's strong performance led to a total dividend payout of ₹220 per equity share in the same year.

Analyst Insights

Notably, analysts at brokerage firm UBS recently adjusted their rating on Nestle India from 'buy' to 'neutral.' While they perceive limited upside potential, they increased the target price of the stock from ₹23,000 to ₹24,500, indicating a potential 7% upside. UBS remains optimistic about Nestle India's long-term prospects for revenue and volume growth, showcasing confidence in the company's future trajectory.

Nestle India's upcoming board meeting holds great promise, with discussions centered around a potential stock split and the declaration of a second interim dividend for 2023. These strategic moves aim to enhance shareholder value and capitalize on the company's strong performance. As the meeting approaches, investors and market watchers eagerly await the outcomes that could shape Nestle India's future direction.