Nestle India settles 4 pc up, mcap soars by Rs 3,000 cr

New Delhi: Shares of Nestle Indiacapitalisation on Thursday gained over 4% adding Rs 2,998.52 crore to its market on the back of good quarterly results.

The company’s shares surged to an intra-day high of Rs 7,640.00, but lost some ground and ended at Rs 7,571.10, up 4.28%.

Following an uptick in the counter, the market capitalisation of the company improved by Rs 2,998.52 crore to Rs 72,997.30 crore.

On the NSE, the stock touched an intra-day high of Rs 7,645.00, and finally ended the day at Rs 7,550.00, up 3.92%.

“Nestleâs focus on innovation, new launches, market share and premiumisation is envisaged to boost volume-led growth. Also, the companyâs new strategyâtop line and market share focusâis encouraging,” Edelweiss Securities said in a research note.

The FMCG major yesterday reported an increase of 59.57% in its net profit to Rs 311.83 crore for the fourth quarter ended December 2017, led by volume growth.

The company also noted that it has crossed the Rs 10,000-crore sales mark in 2017, joining a select group of publicly-listed FMCG companies in the country which have crossed the milestone.

The net sales of the company during the quarter under review was up 10.91% at Rs 2,589.64 crore, as against Rs 2,334.78 crore for the corresponding period a year ago.

Its net sales in 2017 soared 7.71% to Rs 10,135.11 crore, against Rs 9,409.60 crore in the previous year.

HUL and ITC are among a few listed FMCG companies which have reported annual sales of more than Rs 10,000 crore.