Nestle India extends losses post buzz of ban on Maggi noodles by Delhi govt

Nestle India declined 4.07% to Rs 5,939 at 12:55 IST on BSE, extending previous session's 9.05% drop triggered by reports the Delhi government prohibited the sale of Maggi Noodles, a Nestle India product, for 15 days claiming high levels of lead.

Meanwhile, the BSE Sensex was down 64.10 points, or 0.24%, to 26,771.54.

On BSE, so far 39,797 shares were traded in the counter, compared with an average volume of 4,526 shares in the past one quarter.

The stock hit a high of Rs 5,965 and a low of Rs 5,800.10 so far during the day. The stock hit a record high of Rs 7,499.95 on 10 March 2015. The stock hit a 52-week low of Rs 4,755 on 5 June 2014.

The stock had underperformed the market over the past one month till 3 June 2015, declining 5.92% compared with 0.64% decline in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 12.35% as against Sensex's 9.31% fall.

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

The Delhi government has reportedly prohibited the sale of Maggi Noodles, a Nestle India product, for 15 days claiming high levels of lead is obtained in preliminary testing. The Food Safety and Standards Association of India (FSSAI) will reportedly meet Food Safety Commissioners of all states in Delhi today, 4 June 2015. The Jharkhand government will take a call on Maggi noodles issue today, 4 June 2015 amid reports of several states sending samples of the noodles for testing.

Meanwhile, based on a consumer complaint in Coimbatore, a sample of the firm's baby milk powder, NAN Pro-3 has been tested positive for live larvae. According to the results, the milk powder has been stated unsafe for consumption by the Tamil Nadu Food Safety Wing.

In April 2015, Uttar Pradesh Food Safety and Drug Administration (UP FSDA) asked Nestle India to withdraw a batch of Maggi noodles which were manufactured in February 2014 after it found high levels of added monosodium glutamate (MSG), a taste enhancer, in the noodles and lead beyond permissible limits.

Nestle India had after market hours on 1 June 2015, officially announced that it understands that consumers are concerned by reports that the authorities in Uttar Pradesh have found elevated levels of lead in a sample pack of Maggi noodles. The company said it is fully cooperating with the authorities who are conducting further tests and the company is awaiting the results.

Nestle India's net profit rose 23.6% to Rs 320.28 crore on 8.1% growth in total income to Rs 2541.95 crore in Q1 March 2015 over Q1 March 2014.

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

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