Nestle India is poised to unveil its quarterly results on Thursday, with analysts anticipating moderate growth despite ongoing margin pressures. The food giant's performance is expected to reflect a gradual recovery in rural demand, potentially outpacing urban areas.

Revenue and Profit Projections

According to Bloomberg estimates, Nestle India is forecasted to achieve:

The company's EBITDA margin is expected to stand at 23.10%.

Volume Growth and Pricing Strategy

Analysts suggest that the rural recovery is driving a gradual increase in volume growth, projected to reach the low to mid-single digits. To counter margin pressure from high input costs, particularly in palm oil and wheat, Nestle India has implemented significant price hikes. The volume growth is estimated at around 3%, with price increases of approximately 3%, mainly affecting coffee and premium chocolate products.

Factors Influencing Performance

Several key factors are expected to impact Nestle India's performance:

1. Declining Food Inflation: This could potentially ease some of the cost pressures faced by the company.
2. Potential Income Tax Cuts: If implemented, these could support consumption recovery.
3. Palm Oil Duty Reduction: The recent cut in palm oil duty from 20% to 10% is anticipated to benefit raw material costs.

Analyst Perspectives

Analyst ratings on Nestle India stock vary:

• Goldman Sachs maintains a Neutral stance with a target price of Rs 2,335.00.
• Nuvama has issued a Buy rating with a target price of Rs 2,825.00.

The divergence in analyst opinions reflects the complex market dynamics and varying expectations for Nestle India's growth trajectory.

Looking Ahead

As Nestle India prepares to release its quarterly results, investors and market watchers will be keen to see how the company has navigated the challenges of input cost pressures while capitalizing on the recovering rural demand. The balance between volume growth and pricing strategy will be crucial in determining the company's performance in this competitive landscape.

Nestle India , a leading food and beverage company, has made a significant announcement that is set to benefit its shareholders. The company's board has approved a 1:1 bonus share issuance, effectively doubling the number of equity shares in circulation.

Bonus Share Details

The bonus share issuance will increase Nestle India's equity shares from 96.42 crore to 192.84 crore. This move is expected to enhance the liquidity of the company's shares in the stock market and make them more accessible to a broader range of investors.

Key points of the bonus share issuance:

• Ratio: 1:1 (one new share for every existing share)
• Current equity shares: 96.42 crore
• Post-bonus equity shares: 192.84 crore

Record Date and Shareholder Approval

The company has not yet announced the record date for determining shareholder eligibility for the bonus shares. This crucial date will be communicated later and is subject to shareholder approval. Investors should keep an eye out for further announcements regarding the record date and the shareholder meeting to approve this corporate action.

Final Dividend Announcement

In addition to the bonus share issuance, Nestle India has declared a final dividend of Rs 10.00 per share. This dividend payout demonstrates the company's commitment to returning value to its shareholders.

Dividend details:

• Amount: Rs 10.00 per share
• Type: Final dividend

The combination of bonus shares and dividend payout is likely to be well-received by Nestle India's shareholders, potentially boosting investor sentiment towards the company.

Investors and market participants are advised to stay tuned for further updates from Nestle India regarding the implementation of these corporate actions, including the announcement of the record date for bonus shares and any additional information related to the dividend payout.