Shares of ITC fell nearly 2% today, hitting an intraday low of ₹429.65 per share, following the company’s Q3 results announcement. The stock was trading at ₹434.45 by midday, with a market capitalization of ₹5.43 trillion. The day’s trading range for ITC was between ₹429.50 and ₹445.50.
Q3 Performance Snapshot:
ITC reported a 7.51% YoY decline in consolidated net profit to ₹4,935 crore compared to ₹5,335 crore in the year-ago quarter. However, revenue from operations increased by 7.7% YoY to ₹20,350 crore from ₹18,880 crore.
- Cigarettes Business: Revenue grew by 7.8% YoY to ₹8,944.83 crore.
- FMCG Segment: Recorded 4% YoY growth, reaching ₹5,427.70 crore.
- Hotels Segment: Classified under “discontinued operations” following the demerger.
Brokerage Views and Revised Targets:
- BOB Capital: Maintained a ‘Buy’ rating but cut the target to ₹551 from ₹556 due to visibility in the cigarette and FMCG businesses.
- Emkay Global: Reiterated ‘Add’ but revised the target to ₹490 from ₹520, noting muted Q3 delivery but positives in cigarettes and top-line growth.
- Antique Broking: Maintained a ‘Buy’ but reduced the target to ₹542 from ₹577, adjusting EPS estimates by 2%-4% due to the hotel business demerger.
- Nuvama Institutional Equities: Cautious stance with a target of ₹571, citing inflation and weak profitability in the FMCG and packaging segments.
- Motilal Oswal: Continued with a ‘Buy’ rating and a target of ₹550, highlighting steady growth in the cigarette segment and competitive positioning in FMCG.
Outlook:
Despite the mixed Q3 results, analysts remain optimistic about ITC’s core business growth in cigarettes and its strong FMCG category presence. However, concerns around urban demand slowdown, raw material inflation, and the impact of the hotel demerger weigh on future earnings projections.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always consult a financial advisor before making investment decisions.
