Strong volume-led growth adds sweetness to Nestle India; stock gains 3%

Analysts say double-digit earnings growth necessary to sustain pricey stock valuations

In an otherwise falling market, the stock of Nestlé India gained over 3 per cent on Monday to close at Rs 11,781 on the National Stock Exchange. 

What supported the Rs 369.50-increase in share price, besides the special interim dividend of Rs 180 per share (announced on Friday), are strong volume-led top line growth in the June 2019 quarter (Q2CY2019) and the company’s plan to add new manufacturing capacity. 

Notably, this comes at a time when the markets are unable to sense near-term consumption recovery and there is visible absence of capital expenditure by India Inc. Nestlé follows the January