Nestle India gains in volatile trade after relaunching Maggi noodles

Nestle India rose 0.33% to Rs 6,192 at 14:17 IST on BSE after the company announced that it has begun rollout of Maggi noodles from today, 9 November 2015.

The announcement was made during market hours today, 9 November 2015.

Meanwhile, the BSE Sensex was down 201.57 points, or 0.77%, to 26,063.67

On BSE, so far 4,571 shares were traded in the counter, compared with an average volume of 12,738 shares in the past one quarter.

The stock was volatile. The stock rose as much as 0.52% at day's high of Rs 6,204 so far during the day. The stock fell as much as 1.01% at day's low of Rs 6,109.05 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 4.81% compared with 1.41% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 4.88% 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.

With the commencement of sale of Maggi Noodles Masala today, 9 November 2015, the company will make best endeavour to reach the product to consumers at earliest, Nestle India said. Seperately, the company partnered with Snapdeal to rollout online offers, Nestle India said

Most states do not have a ban on sale of Maggi noodles. For states where specific directions are required, Nestle India is engaging with them, the company said.

On 4 November 2015, Nestle India announced that the company 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.

It may be recalled that the Food Safety and Standards Authority of India (FSSAI) had banned the production and sale of Maggi in June 2015 amid claims that samples contained dangerously high levels of lead and the taste enhancer monosodium glutamate (MSG).

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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