Nestle India Shares Surge Amid Profit Hike and Market Valuation Boost

Shares of Nestle India Ltd rose over 4% following a 4.94% increase in net profit for the December quarter. Despite food inflation and moderated urban consumption, the company shows strong market valuation. Key brands continue performing well, driven by pricing and volume strategies.

On Friday, shares of Nestle India Ltd experienced a notable increase, rising over 4% after the company reported a 4.94% hike in net profit for the December quarter. The FMCG giant's performance impressed investors, sending the stock soaring by 4.25% to close at Rs 2,313.05 on the Bombay Stock Exchange (BSE), with an intraday spike to Rs 2,387.45.

Meanwhile, on the National Stock Exchange (NSE), the shares advanced by 3.68% to reach Rs 2,299.05. This boost in stock value was accompanied by a significant rise in the company's market valuation, which surged to Rs 2,23,014.37 crore, up from Rs 88,746.54 crore.

Despite challenges such as food inflation and a moderated urban consumption, Nestle India's resilience shone through in its financial results. With a strong focus on pricing and volume strategies, three out of its four product groups achieved healthy growth. Chairman Suresh Narayanan emphasized the continued strong performance of key brands in this challenging environment.

(With inputs from agencies.)