Nestle India is going to be in focus this month for various reasons. Firstly, the company may announce its quarterly earnings for FY26. Secondly, the FMCG giant is going to hold an Extraordinary General Meeting (EGM) in the coming days, where it will seek approval for its 1:1 bonus proposal. The record date for the bonus could be announced in July as well. However, Nestle started the July with a bearish trend, as investors cashed in gains of five-consecutive-day winning streak.
Nestle India Share Price:
After market hours of July 1st, Nestle stock closed at Rs 2410.25 apiece, down by 2.24% on BSE, with market cap of Rs 2,32,385.98 crore. The stock corrected and halted its five consecutive days winning streak. From June 24 to June 30th, Nestle stock zoomed by 4.5% due to its first-ever bonus announcement.
Nestle's 52-week high and low are at Rs 2,777 apiece and Rs 2,115 apiece respectively. Its return on equity is at 83.06%.
Nestle Q1 Results FY26:
Nestle India has intimated stock exchanges that the meeting of the Board of Directors of the Company is scheduled on July 24, 2025, inter alia, to consider and approve unaudited financial results (standalone and consolidated) of the Company for the first quarter ending 30th June 2025
During FY25, Nestle posted total sales of Rs 20,077.5 crore, while profit from operations stood at 21.5% of Sales. Net profit is at Rs 3,314.5 crore.
Also, Nestle has announced that it will have its Extraordinary General Meeting of members of the Company on Thursday, 24th July 2025.
Nestle Bonus Issue:
Nestle declared a bonus issue of a 1:1 ratio. The number of securities proposed to be issued as bonus is to the tune of 96,41,57,160 equity shares of face value of ₹1/- each amounting to Rs 96,41,57,160.
It said the bonus equity shares will be issued out of the retained earnings (free reserves) as per the audited financial statements of the Company for the year ended 31st March 2025.
Furthermore, Nestle said that the estimated time frame for bonus issues to be credited is within two months from the date of approval by the Board of Directors, i.e., on or before 25th August 2025. Hence, the record date will be ahead of this scheduled time.
Ahead of EGM, Nestle said, "While considering the issue of bonus equity shares, the Board noted that the Company's equity shares had been sub-divided in a ratio of 10:1 (i.e. for every one (1) equity share of face value of ₹10/- each, ten (10) equity shares of face value of ₹1/- each were issued), effective from the Record Date of 5th January 2024. This sub-division was intended to make the Company's equity shares more affordable and promote broader retail investor participation. As of 19th June 2025, retail/ individual shareholders comprised 95.5% of the total number of shareholders, holding approximately 12.4% of the paid-up value of equity shares. Amongst these shareholders, approximately 30% held fewer than five equity shares, including around 8.6% who held only one equity share."
Thereby, Nestle added on July 1st in its filing, "The Board is of the opinion that the proposed issuance of bonus equity shares in the ratio of 1:1 recognises the steadfast support and loyalty of the shareholders throughout the Company's growth and transformation journey. Moreover, this initiative is likely to improve the liquidity of the shares and broaden the shareholder base."
Nestle Share Price Recommendation:
After the bonus issue announcement, the consensus recommendation from 35 analysts for Nestle India Ltd. is HOLD. As per Trendlyne data, from the total, 4 analysts suggest STRONG BUY, and 7 recommend BUY. EPS is expected to grow by 17.4% in FY25. The average target price is at Rs 2426.31, which is hinting at mild 1% potential upside ahead.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author, GoodReturns.In nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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