Nomura has maintained Buy rating for ITC, setting a target price of Rs 555 per share. The brokerage noted strong Q2 sales but highlighted margin pressures across segments:
- Cigarette volumes grew by 3% year-over-year (YoY), above the estimated 2.5%, though margins contracted by 145 basis points (bps) YoY.
- FMCG growth was 5.4%, in line with expectations, but faced a margin contraction of 37 bps YoY.
- ITC’s hotel segment performed well, while paper sales improved, albeit with a further hit to operating margins (OPM). The agri-business segment showed unexpected strength.
Current Market Price (CMP): Rs 470.70
Disclaimer: This information is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making investment decisions.
