Nestle India advances amid volatility

Nestle India rose 0.67% to Rs 6,097 at 12:10 IST on BSE after the company said it has approached the Bombay High Court, as part of the effort to resolve the Maggi noodles issue.

Meanwhile, the S&P BSE Sensex was down 270.58 points or 1.01% at 26,569.92.

On BSE, so far 22,000 shares were traded in the counter as against average daily volume of 10,093 shares in the past one quarter.

The stock was volatile. The stock rose as much as 4.14% at the day's high of Rs 6,307.40 so far during the day. The stock fell as much as 1.41% at the day's low of Rs 5,971 so far during the day. The stock had hit a record high of Rs 7,499.95 on 10 March 2015. The stock had hit a 52-week low of Rs 4,845 on 10 July 2014.

The stock had underperformed the market over the past one month till 10 June 2015, sliding 11.01% compared with Sensex's 0.98% fall. The scrip had also underperformed the market in past one quarter, declining 17.91% as against Sensex's 6.51% fall.

The large-cap company has equity capital of Rs 96.42 crore. Face value per share is Rs 10.

As part of the effort to resolve the Maggi noodles issue, Nestle India today, 11 June 2015, approached the Bombay High Court raising issues of interpretation of the Food Safety and Standards Act 2011, whilst seeking judicial review of the order dated 6 June 2015 passed by the Food and Drug Administration in Maharashtra and the order dated 5 June 2015 passed by the Food Safety and Standards Authority of India (FSSAI).

At the same time, Nestle India said it is continuing the withdrawal of Maggi noodles products. This action will not interfere with this process, it added. Nestle India further said it will proceed further as per orders that may be passed by the Bombay High Court.

Nestle India's net profit rose 23.6% to Rs 320.28 crore on 8.4% growth in net sales to Rs 2506.79 crore in Q1 March 2015 over Q1 March 2014.

Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle is the world's leading Nutrition, Health and Wellness company.

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