Nestle India has reported a gain of 11 percent in net profit which is at Rs.538.6 crore for the June-ended quarter. Thus, Nestle India Q1 results beat the analyst’s prediction.
The company also stated that there is a flow of revenue from operations and rises to 14 percent YOY which stood at Rs. 3476 crore for the June-ended quarter. Thus, was below expert estimates.
The domestic sale of the company was not critically impacted by the second wave of covid-19. Moreover, the sales grew nearly by 13.7 percent YOY. Furthermore, both domestic & export sales did a double-digit growth mainly determined by product fusion and volume.
Additionally, the company draws a strong balance sheet that justifies financial stability during the challenging environment of Covid-19.
Moreover, the company has decided to transfer general reserve to retained earnings to maintain corporate governance.
Due to some amendments in business activities, the company has sold a 20 percent stake to Sahyadri Agro.
Today, the scrip concluded at Rs.18000 in NSE thereby dipping by 1.2 percent.
Technical outlook
Nestle India trend is positive, any sharp decline till 17600 will be the best buying opportunity in it.
Maintain stop loss below 17000 on a closing basis.
Immediate resistance and target look 18200—18500.
A weekly close above 18500 will take it to 20000++ levels in days to come.