Nestle India rose 0.12% to Rs 6,210 at 13:05 IST on BSE, with the stock witnessing volatility on media reports that the company has canceled its 12-year old contract for manufacturing its Maggi instant noodles with SAJ Food Products.
Meanwhile, the S&P BSE Sensex was up 200.59 points or 0.78% at 25,817.43.
On BSE, so far 1,172 shares were traded in the counter as against average daily volume of 12,893 shares in the past one quarter.
The stock was volatile. The stock rose as much as 0.6% at the day's high of Rs 6,240 so far during the day. The stock lost as much as 1.62% at the day's low of Rs 6,101.55 so far during the day. The stock had hit a record high of Rs 7,499.95 on 10 March 2015. The stock had hit a 52-week low of Rs 5,499 on 8 June 2015.
The stock had outperformed the market over the past one month till 28 September 2015, rising 1.77% compared with Sensex's 2.94% fall. The scrip had also outperformed the market in past one quarter, surging 4.28% as against Sensex's 7.89% fall.
The large-cap company has equity capital of Rs 96.42 crore. Face value per share is Rs 10.
According to media reports, Nestle India has canceled its 12-year old contract for manufacturing its Maggi instant noodles with SAJ Food Products as part of a standard process, where Nestle India review's its overall capacity every two years on the basis of volume projections. This move is on the back of the company's intention to increase focus on quality, after the recent ban imposed by the Food Safety and Standards Authority of India (FSSAI), reports suggested.
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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