FSSAI cracks down on FMCG giants Nestlé India and HUL over misleading labels, safety violations
Nestle India flagged a risk.
· Business Today Mkts, NDTV Profit
The regulator directed the affected corporate entities to submit show-cause responses within a stipulated timeframe, warning that failure to provide satisfactory explanations will prompt immediate legal action under the FSS Act, 2006.
The analysis
Against that, the stock is -0.8% on the day at ₹1,265.50, and has returned -11.1% over three months. It sits 18% below its 52-week high. The fmcg sector has moved -3.1% over the same period, so Nestle India is running 8.0 points behind its peers.
For Nestle India, the question is how much of this is already reflected in the price and how much re-rates the fmcg peer set alongside it.
Market context
- The company directly in focus is NESTLEIND.
- Sector exposure: FMCG.
In this story
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