Nestle India spurts as lab tests hold Maggi Noodles safe for consumption

Nestle India rose 5.80% to Rs 6,563.85 at 14:18 IST on BSE after the company said that tests in three separate laboratories conclude that Maggi Noodles are safe for consumption.

The announcement was made during trading hours today, 16 October 2015.

Meanwhile, the BSE Sensex was up 65.80 points, or 0.24%, to 27,075.94.

On BSE, so far 40,000 shares were traded in the counter, compared with an average volume of 12,190 shares in the past one quarter.

The stock hit a high of Rs 6,675 and a low of Rs 6,179.80 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 15 October 2015, rising 3.18% compared with 5.07% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 3.94% as against Sensex's 4.21% decline.

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

Nestle India said it has received test results from all three laboratories mandated by the Bombay High Court to test Maggi Noodles samples. All the 90 samples, covering 6 variants, tested by these laboratories are clear with lead content much below the permissible limits.

Nestle India has always maintained that Maggi Noodles are safe. Nestle India has conducted over 3500 tests representing over 200 million packs in both national as well as international accredited laboratories and all reports are clear. In addition to these, various countries including USA, UK, Singapore, Australia and others have found Maggi Noodles manufactured in India safe for consumption, the company said.

Nestle said it will continue to collaborate with the Food Safety and Standards Authority of India (FSSAI), the apex food regulator and other stakeholders. In compliance with the orders of the Bombay High Court, the company will now commence manufacture and will start selling only after the newly manufactured products are also cleared by the designated three laboratories.

Nestle India said it is committed to reintroduce Maggi Noodles at the earliest.

Nestle India reported net loss of Rs 64.40 crore in Q2 June 2015 compared with net profit of Rs 287.86 crore in Q2 June 2014. Net sales dropped 20.1% to Rs 1933.84 crore in Q2 June 2015 over Q2 June 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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