Nestle Stock Up 2% As Market Speculates On Possible Price Hike Plans – News18
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Nestle India shares gain amid company’s consideration of price hike
Nestle India
Nestle Share Price Today: Nestle India shares rose 1.6 per cent in Tuesday’s trading session on the BSE, reaching an intraday high of Rs 2,255.90 per share. The stock saw increased demand following a Reuters report suggesting that the company is contemplating small price hikes to offset rising inflation in coffee, cocoa, and edible oil, while still striving to maintain sales momentum.
Around 1:07 PM, Nestle India’s stock price was up 1.34 per cent at Rs 2,250 per share on the BSE, compared to a 0.28 per cent rise in the BSE Sensex, which was at 74,660.84. The company’s market capitalization stood at Rs X crores.
Nestle India’s Managing Director, Suresh Narayanan, shared with Reuters on February 24 that the company would implement price increases “only when absolutely essential,” with the goal of keeping any hikes as minimal as possible. He acknowledged, however, that price increases aren’t a cure-all for the industry, as they can adversely affect volume growth.
Narayanan also pointed out the decline in consumer spending in key urban areas and how rising product prices have pressured corporate India’s profitability in the October-December quarter. He remains optimistic, however, that the measures announced in the Union Budget, including reduced personal income tax rates, will help stimulate consumption in the second half of the year.
Despite the ongoing economic slowdown, Indian consumers are continuing to spend on quick delivery services like Swiggy’s Instamart, Zomato’s Blinkit, and Zepto. These platforms have gained market share in major cities, but Narayanan cautioned that their future growth depends on the long-term sustainability of their business models, as many are still incurring losses.
In the past one year, Nestle India shares have lost 15 per cent against Sensex’s rise of 2.2 per cent.
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