Nestle India is trading higher by 3% to Rs 5,252, extending its previous day’s 3% gain, on back of heavy volumes. The stock opened at Rs 5,099 and hit a record high of Rs 5,265 on BSE.
A combined 56,261 shares already changed hands on the counter till 1301 hours against an average sub 50,000 shares that were traded daily in past two weeks on BSE and NSE.
The stock of fast moving consumer goods (FMCG) company has outperformed the market by gaining 8% after announcement of Q1 earnings on May 13. The benchmark Sensex has gained 2.3%, FMCG sector index rose marginally by 0.08% during the same period.
The company’s EBITDA or operating margins expanded by 147bps at 23.2% for the quarter ended March 31, 2013 due to fall in raw material prices and lower other expenditure.
Analyst at Anand Rathi Research, the recent fall in food prices will help expand the gross margins without aggressive price hikes.
A combined 56,261 shares already changed hands on the counter till 1301 hours against an average sub 50,000 shares that were traded daily in past two weeks on BSE and NSE.
The stock of fast moving consumer goods (FMCG) company has outperformed the market by gaining 8% after announcement of Q1 earnings on May 13. The benchmark Sensex has gained 2.3%, FMCG sector index rose marginally by 0.08% during the same period.
The company’s EBITDA or operating margins expanded by 147bps at 23.2% for the quarter ended March 31, 2013 due to fall in raw material prices and lower other expenditure.
Analyst at Anand Rathi Research, the recent fall in food prices will help expand the gross margins without aggressive price hikes.
