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Nestle India is set to announce its Q3 results for FY 2024-25 on January 31, 2025, before 3.30 pm. The company reported a consolidated net profit of Rs 899.4 crore in Q2 FY25, a slight decline from the previous year, with revenue increasing by 1.3% to Rs 5,074.76 crore. The trading window for its shares will be closed from January 1 to February 2, 2025.
The Indian stock market experienced a significant downturn, with the Sensex closing at 78,041.59, down 1.49%, and the Nifty at 23,587.50, down 1.52%. All sectoral indices fell, particularly the realty index, which dropped by 4%, contributing to a market capitalization loss exceeding ₹19 lakh crore. This marked the largest decline in two years, with both Nifty and Sensex falling over 4%.
Nestle India has hit a 52-week low of Rs. 2147 on December 20, 2024, reflecting a 4.42% decline over the past five days and a 13.81% drop over the year. The stock is underperforming its sector by 0.71% and is trading below all major moving averages, indicating a bearish trend.
Airtel, Nestle India, Mazagon Dock, IndiGo, Exide, and Hyundai are among the key stocks to monitor ahead of Friday's trading session. Additionally, International Gemmological Institution Ltd. will attract attention as it makes its market debut on the same day.
Nestlé India has assured stakeholders that Switzerland's suspension of the Most Favoured Nation (MFN) status will not impact its operations, as the company already deducts a 10% withholding tax on cross-border payments. The issue is a government-to-government matter, stemming from a Supreme Court ruling related to the MFN clause in the Double Taxation Avoidance Agreement. Nestlé India continues to invest significantly in the Indian market, reporting a revenue of Rs 24,393.9 crore for the financial year 2023-24.
Nestle India Ltd. stated that the suspension of Switzerland's 'most favoured nation' status for India will have "no impact" on its operations. This decision, stemming from a Supreme Court ruling, is a broader policy issue and not specific to the company, which already applies a 10% withholding tax on cross-border payments. Nestle India remains a significant market for the Swiss FMCG giant, having operated in the country for 112 years.
Nestle India shares closed at Rs 2188.05 on December 18, 2024, reflecting a 0.68% decline. The stock has faced a challenging six-month return of -13.9% and a one-year return of -9.56%, with trading volume at 868,322, slightly below the 7-day average.
Nestlé India has delivered a 62% total shareholder return over the past five years, despite a recent 12% drop in share price. While earnings per share grew at 12% annually, the market's pessimism is reflected in a P/E ratio of 66.83, indicating potential undervaluation. Shareholders have seen a 7.4% decline this year, contrasting with a 26% market rise, suggesting a need for careful evaluation of the company's fundamentals.
The Indian equity markets closed lower for the second consecutive session on December 9, with the Sensex down 200.66 points at 81,508.46 and the Nifty down 58.80 points at 24,619. Selling pressure was evident in FMCG, PSU Bank, auto, and pharma stocks, while capital goods, IT, and metal sectors saw some buying interest. Notable Nifty losers included Tata Consumer, HUL, and Tata Motors, whereas L&T, Wipro, and SBI Life Insurance were among the gainers.
India's benchmark indices, Sensex and Nifty, rebounded sharply on December 5, with the Sensex rising 1,000 points from its low, driven by gains in IT stocks and Reliance Industries. As of 12:20 pm, the Sensex was up 500 points to 81,450, while Nifty gained 133 points to 24,600. Titan led the gains, while NTPC was the top laggard. Sector performance showed Nifty IT as the top gainer, despite mixed market breadth.
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