Nestle India gains nearly 9% in three sessions

Nestle India rose 1.19% to Rs 5,534 at 15:14 IST on BSE, extending recent gains triggered by a foreign brokerage upgrading the stock to 'outperform' from 'sell' and raising its price target to Rs 5,850 from Rs 4,900.

Meanwhile, the BSE Sensex was up 444.51 points, or 2.18%, to 20,860.02.

On BSE, 2,945 shares were traded in the counter compared with average volume of 5,300 shares in the past one quarter.

The stock hit a high of Rs 5,560 and a low of Rs 5,465 so far during the day. The stock hit a 52-week high of Rs 5,864.85 on 18 July 2013. The stock hit a 52-week low of Rs 4,410 on 28 March 2013.

The stock rose 3.72% to Rs 5,285 on 15 October 2013. It has risen 8.61% in three sessions from Rs 5,095.30 on 14 October 2013.

The stock had outperformed the market over the past one month till 17 October 2013, rising 9.99% compared with the Sensex's 3.09% rise. The scrip had, however, underperformed the market in past one quarter, falling 4.93% as against Sensex's 2.34% rise.

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

The foreign brokerage upgraded its rating on Nestle India shares as it expects the company to see better days ahead. The brokerage said that Nestle India is starting to see improving sales while it remains less dependant on imports than competitors such as Hindustan Unilever. Nestle India's shares have also underperformed consumer good rivals, the brokerage added.

Net profit of Nestle India rose 10.33% to Rs 271.38 crore on 11.41% rise in net sales to Rs 2213.21 crore in Q2 June 2013 over Q2 June 2012.

Nestle India is a subsidiary of Nestle S.A. of Switzerland. It manufactures milk products and other food products.

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