Nestle India's stock price rose to a new high on Friday after the firm reported strong results for the fiscal quarter ended September 2023. On the BSE, Nestle India shares rose as high as 1.90% to 24,580.35 per share.

Nestle India recorded a 37.27% increase in net profit for the quarter ending September 2023, to 908 crore from 661.46 crore the previous year.

The company's Board of Directors declared a second interim dividend of 140 cents per equity share for 2023, as well as a 1:10 share split.

Brokerages maintained their positive outlook on Nestle India. Here's what brokerages had to say:

Motilal Oswal Group

Nestle has a strong domestic food market position due to its unique product line. Its strategy is to increase out-of-home consumption and reach rural areas, resulting in double-digit earnings growth for the foreseeable future. Nestle is well-positioned to capitalise on the vast opportunities in India's Packaged Foods segment thanks to significant investments in capacity enhancement, brand support, and R&D initiatives, according to brokerage firm Motilal Oswal Financial Services.

Nuvama Institutional Equities

Nestlé's Q3CY23 EBITDA and PAT increased by 21.3% and 37.3%, respectively, exceeding our and the Street's expectations, while revenue increased by 9.5%, falling short of our and the Street's expectations. We anticipate a 5% increase in volume. Domestic sales increased steadily, owing primarily to changes in mix, volume, and price. According to Nuvama Institutional Equities, gross margin and EBITDA margin increased 381 basis points and 238 basis points, respectively, demonstrating pricing power.

Nestlé India is still one of the brokerage's top selections. It has a 'Buy' call on the company and boosted the target price from $25,810 to $29,165 per share. Nestle India shares were trading 1.74% higher on the BSE at 24,542.75 per share at 9:35 a.m.