Nestlé India is presently the seventh highest-priced Indian stock, trading at over ₹22,600 per share, making it expensive for many investors. However, the company’s board of directors is set to meet on October 19 to discuss its first-ever stock split. The board will explore an alteration in the company's share capital through a sub-division or split of existing equity shares.
At the same meeting, the board of directors will also declare the comapny's second interim dividend for 2023, if any. The meeting is scheduled to consider the financial results of the company for the third quarter.
If approved by the board and shareholders, the record date for the second interim dividend will be November 1, and it shall be paid on and from 16 November 2023.
The company's diverse product portfolio includes popular items such as noodles, coffee, chocolates, packaged milk, and baby formula.
Last week, analysts at brokerage UBS downgraded their rating on Nestle India to ‘neutral’ from ‘buy’ as they saw limited upside. However, they raised the target price of the stock from ₹23,000 to ₹24,500 implying a potential upside of up to 7%, and said they remain optimistic about Nestle India’s long-term revenue and volume growth.
Nestle shares saw a rise of around 2% on Wedensday morning on the back of the news of a possible stock split.
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