FMCG giant Nestle India will turn ex-date on July 4 for its final dividend of Rs 10 per share for FY25. Nestle is in focus this month for a host of reasons. Apart from the dividend, Nestle's Q1 results along with the bonus issue record date are also eyed. In the upcoming quarter, Nestlé's performance is likely to remain muted.
Nestle India Share Price:
Ahead of the ex-dividend date, Nestle stock closed at Rs 2388.55 apiece on BSE after the July 3rd trading session. Its market cap is around Rs 2,30,293.76 crore. Nestle's 52-week high and low are at Rs 2,777 apiece and Rs 2,115 apiece respectively.
YTD, Nestle stock has zoomed by a little over 10%.
Nestle India Final Dividend:
This FMCG player has recommended a final dividend of Rs. 10/- (Rupees ten only) per equity share of the face value of Re. 1/- (Rupee one only) each for the financial year 2024-25 on the entire issued, subscribed and paid-up share capital of the Company of 964,157,160 equity shares of face value of Re. 1/- (Rupee one only) each.
The record date is fixed on July 4th, while the dividend is expected to be paid on and from July 24th.
Besides the aforementioned final dividend, the total dividend for the financial year ended 31st March 2025 includes first interim dividend of Rs 2.75/- per equity share (face value of Re 1/- each), second interim dividend of Rs 14.25 per equity share (face value of Re 1/- each) paid on 06th August 2024 and 27th February 2025 respectively.
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.
This will be Nestle's first-ever bonus issue.
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.
Also, Nestle has announced that it will have its Extraordinary General Meeting of members of the Company on Thursday, 24th July 2025.
For the Q1FY26 earnings, Emkay Global in its note said, "Nestlé's performance is likely to remain muted amid the inflationary setting across its segments. We see 4% topline growth in Q1FY26E with ~1% volume growth (real internal growth to be ~2%). To negate the inflationary stress, the company has selectively effected price hikes, although we see price growth to be lower amid increased promotion intensity."
Also, the brokerage added, "We see gross margin contraction at ~110bps YoY (like Q4FY25) to 56.5%, affected by the inflationary setting. EBITDA margin is likely to see a 70bps contraction YoY to 22.2%. EBITDA should see 2% growth, while earnings should see a decline of ~6% YoY. We see a surge in the depreciation, given commissioning of new capex. This, along with lower other nonoperating income, is likely to have a bearing on earnings growth."
Accordingly, Emkay has recommended 'REDUCE' rating on Nestle for a target price of Rs 2,300.
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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