Nestle India has dipped nearly 4% to Rs 4,680, extending its Friday’s 3% fall on the Bombay Stock Exchange (BSE).
The stock opened at Rs 4,875 and touched a low of Rs 4,654, its lowest level since September last year. A combined 33,179 shares have changed hands on the counter so far on the NSE and BSE.
Shares of packaged foods maker has underperformed the market by declining 9% since February 13, 2014, after reported a lower-than-expected earnings sales growth for the fourth quarter of the calendar year 2013 (Q4CY13). The benchmark S&P BSE Sensex has gained about 4% during the same period.
The company reported a net profit of Rs 282 crore in the quarter ended December 2013, up 1%, against a net profit of Rs 279 crore in the corresponding quarter last fiscal. Sales rose to Rs 2,252 crore, up 4.63%, from Rs 2,153 crore in year-ago period.
Analyst on an average had expected net profit of Rs 312 crore on net sales of Rs 2,399 crore.
Employee costs and other expenses were up each by 6% year-on-year (yoy), ahead of sales growth, thereby weighing on EBITDA margins further, which declined over 200 basis points yoy to 20.42% from 22.62%. Management expects current pressure on input costs to continue near term.
Analyst at JP Morgan lowered its target price on the stock to Rs 4,700 from Rs 5,175, given sluggish growth trends witnessed in Q4 and likely pressure on volume/margins in the near term.
The stock opened at Rs 4,875 and touched a low of Rs 4,654, its lowest level since September last year. A combined 33,179 shares have changed hands on the counter so far on the NSE and BSE.
Shares of packaged foods maker has underperformed the market by declining 9% since February 13, 2014, after reported a lower-than-expected earnings sales growth for the fourth quarter of the calendar year 2013 (Q4CY13). The benchmark S&P BSE Sensex has gained about 4% during the same period.
The company reported a net profit of Rs 282 crore in the quarter ended December 2013, up 1%, against a net profit of Rs 279 crore in the corresponding quarter last fiscal. Sales rose to Rs 2,252 crore, up 4.63%, from Rs 2,153 crore in year-ago period.
Analyst on an average had expected net profit of Rs 312 crore on net sales of Rs 2,399 crore.
Employee costs and other expenses were up each by 6% year-on-year (yoy), ahead of sales growth, thereby weighing on EBITDA margins further, which declined over 200 basis points yoy to 20.42% from 22.62%. Management expects current pressure on input costs to continue near term.
Analyst at JP Morgan lowered its target price on the stock to Rs 4,700 from Rs 5,175, given sluggish growth trends witnessed in Q4 and likely pressure on volume/margins in the near term.
