Nestle Bonus Issue Announcement On June 26: FMCG Stock Jumps 1.5% Despite Sensex Exit; BUY TIME?

FMCG giant Nestle India will consider its first-ever bonus issue in a board meeting on June 26, 2025. Accordingly, this large-cap stock will be in focus. On Monday, Nestle share price surged despite exiting the benchmark Sensex as part of BSE's rejig. Currently, the stock is around Rs 2,360. Brokerages recommend Neutral to Hold pattern in Nestle.

Nestle India Ltd Share Price:

At the time of writing, Nestle share price performed at Rs 2398 apiece, up by 1.4% on BSE, with market cap of Rs 2,30,915.64 crore. The stock is trading near its intraday high of Rs 2399.55 apiece.

The stock's 52-week high and low is at Rs 2,777.00 apiece and Rs 2,115 apiece respectively. The stock's return on equity is at 84.29%.

The Maggi maker is in focus on June 23 due to the reconstitution of indices at BSE, where it is exiting the Sensex benchmark.

Nestle India Bonus Issue:

In its regulatory filing, Nestle said, "This is to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, 26th June 2025, to inter-alia consider and approve the proposal for issue of bonus shares, subject to requisite approvals."

This will be the first bonus issue of Nestle. This also comes after Nestle carried its first stock sub-division in January 2024, in the ratio of 1:10.

If Nestle announces a bonus issue, its stock price will be adjusted accordingly. Since its stock split, Nestle has delivered a total of Rs 42.5 dividend to its investors.

In 2025 alone, the company has announced Rs 24.25 dividend per share. Of this total, Nestle is yet to turn ex-dividend for dividend Rs 10 per share whose record date is fixed on July 4, 2025.

Meaning Of Bonus Issue:

A bonus issue is also known as a stock or scrip dividend. It is a corporate action where a company issues additional shares to its existing shareholders at no extra cost. These additional shares are allocated in a fixed ratio to the shares already owned. Rather than drawing additional investments, a bonus issue capitalises on the company's retained earnings to increase the number of shares in circulation, which can potentially make the stock more accessible due to a lower per-share price. This is a strategy used primarily to reward shareholders and can signal confidence in the company's prospects, as per Angel One's blog.

BUY/SELL Nestle Stock?

As per the Trendlyne data, the consensus recommendation from 36 analysts for Nestle India Ltd. is HOLD. EPS is expected to grow by 17.4% in FY25. The average target price is set at Rs 2426.27 apiece.

Meanwhile, Motilal Oswal has recommended 'NEUTRAL' on Nestle for a target price of Rs 2,400.

About Nestle Ltd:

NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With nine manufacturing facilities, large number of co-packers, and a strong distribution network, Nestlé India provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.