Nestle India shares were trading higher in the morning trade on Tuesday after the company said it has resumed manufacturing of its instant noodles Maggi at three of its India facilities and will hit the markets after getting clearances from food testing laboratories. (Photo: Reuters)
Nestle India shares were trading higher in the morning trade on Tuesday after the company said it has resumed manufacturing of its instant noodles Maggi at three of its India facilities and will hit the markets after getting clearances from food testing laboratories.
At 11.21 am, the share price of the company was trading 0.56 per cent up at Rs 6,370.55. The scrip opened at Rs 6,420 and had touched a high and low of Rs 6,420 and Rs 6,353.50, respectively, in trade so far. Sensex was down 143.76 points at 27,218.20.
The company, which was forced to withdraw Maggi noodles from market and stop its production in June following lead and MSG content beyond permissible limits, will send first samples of the fresh batches to three accredited labs for tests. This is in compliance with the order of Bombay High Court.
In a BSE filing, the company said, “We have resumed manufacturing of Maggi Noodles at three of our plants, at Nanjangud (Karnataka), Moga (Punjab) and Bicholim (Goa). In compliance with the orders of the Hon’ble High Court of Bombay, fresh samples from these newly manufactured batches will be sent for testing to the three accredited laboratories mandated by the Hon’ble High Court. We shall commence sale only after the samples are cleared by these laboratories. We are engaging with the relevant State authorities and other stakeholders at our other manufacturing locations to commence manufacture at the earliest.”
Karthik Rangappa, vice president, education and research, Zerodha, said, “At the current market price, Nestle India shares are trading 15 per cent lower to its 52 week high. We believe long term investors should use this opportunity and buy in with a 3 – 4 year perspective.”
The BSE group ‘A’ stock of face value Rs 10 has touched a 52 week high of Rs 7499.95 on 10-Mar-2015 and a 52 week low of Rs 5499.00 on 08-Jun-2015.
Last one week high and low of the scrip stood at Rs 6629.00 and Rs 6290.05 respectively. The current market capitalisation of the company is Rs 61,378.24 crore.
The promoters holding in the company stood at 62.76 per cent while institutions and non-institutions held 17.05 per cent and 20.18 per cent, respectively.
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