Nestle India gains after labs clear Maggi noodles samples

Nestle India rose 0.92% to Rs 6,291.60 at 14:16 IST on BSE after the company said Maggi noodles samples sent from newly manufactured stocks tested by three laboratories have been cleared.

The announcement was made during trading hours today, 4 November 2015.

Meanwhile, the BSE Sensex was up 62.50 points, or 0.24%, to 26,653.09.

On BSE, so far 25,000 shares were traded in the counter, compared with an average volume of 13,205 shares in the past one quarter.

The stock hit a high of Rs 6,479 and a low of Rs 6,220.80 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 5,499 on 8 June 2015.

The stock had underperformed the market over the past one month till 3 November 2015, sliding 2.60% compared with 1.41% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 1.63% as against Sensex's 5.66% decline.

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

Nestle India announced that it has received results from all three NABL (National Accreditation Board for Testing and Calibration Laboratories) accredited laboratories mandated by the Bombay High Court to test newly manufactured Maggi noodles samples. All the samples of the Maggi Noodles Masala have been cleared with lead much below permissible limits, the company said in a statement.

Nestle India said it has conducted over 3500 tests representing over 200 million packs in both national as well as international accredited laboratories for testing and all reports are clear. In addition to these, various countries including USA, UK, Singapore, Australia and others have found Maggi noodles exported from India safe for consumption, it added.

Now that the orders of the Bombay High Court have been complied with, the company said it will make best endeavor to commence the sale of Maggi Noodles Masala within this month as well as continue engaging with states where permissions are needed or specific directions may be necessary. The company is presently manufacturing Maggi noodles at three of its locations, at Nanjangud (Karnataka), Moga (Punjab) and Bicholim (Goa) and for the other two locations at Tahliwal and Pantnagar, it is engaging with the relevant authorities in Himachal Pradesh and Uttarakhand to obtain directions for commencing manufacture of Maggi noodles.

Nestle India said it is committed to collaborate and work proactively with FSSAI, the apex food regulator, FDA authorities in States and other stakeholders.

Nestle India's net profit fell 60.1% to Rs 124.20 crore on 32.1% decline in net sales to Rs 1736.20 crore in Q3 September 2015 over Q3 September 2014.

Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle is the world's leading nutrition, health and wellness company. Nestle S.A. held 34.28% stake in Nestle India (as per the shareholding pattern as at 30 September 2015).

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