Shares of ITC declined shut to three per cent on posting a 7.27 per cent decline in consolidated web revenue to ₹5,013.16 crore for the December quarter 2024.
Nevertheless, its income from operations rose by 9.05 per cent to ₹20,349.96 crore for the quarter beneath assessment.
ITC inventory was the key laggard amongst Nifty 50 pack throughout Friday’s buying and selling session, closing 2.49 per cent decrease at ₹430.10 after hitting a low of ₹428.40. The Nifty FMCG index depreciated 1.30 per cent to 55,113.30.
In the meantime, ITC Motels emerged amongst high gainers. closing 3.73 per cent optimistic at ₹178.53 on the NSE.
Most brokerages have maintained their stance highlighting cigarette quantity development, however lowered goal costs and EPS estimates because of weak margins, muted FMCG efficiency and lodge enterprise demerger.
World brokerages JP Morgan and Morgan Stanley have reiterated obese calls on the inventory on the goal costs of ₹505 and ₹578, respectively, quoting that the cigarette development quantity as a key shock and the income was in-line, however margins had been a tad delicate.
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Nuvama Institutional Equities is cautious in close to time period given the continued city slowdown, inflation in key uncooked materials and weak profitability in FMCG and paperboards, paper & packaging section. Stating that the Q3 outcomes had been in-line with estimates, the brokerage has retained purchase on the goal worth of ₹571.
Noting ITC’s announcement of buying Prasuma, Nuvama believes it shall assist the corporate change into a full-stack participant within the frozen meals section.
Analysts of Motilal Oswal have reiterated purchase score at a goal worth of ₹550 and slashed the EPS estimates by 4 per cent for FY25 and 5 per cent for FY26, primarily because of the affect of lodge enterprise demerger. Motilal anticipates sustainable development in cigarettes enterprise, whereas including that FMCG is seeing moderation because of rising commodity costs.
In the meantime, analysts of JM Monetary mentioned that the demerger ought to scale back the capex depth and assist enchancment in return on invested capital (ROIC). The brokerage has pared the goal worth from ₹550 to ₹515, sustaining a purchase.
Elara Capital emphasised that EBIT development in cigarettes and FMCG took a success because of greater enter price, which was partly offset by agri companies. The brokerage is optimistic as ITC continues to ship regular development amid subdued demand. It has reiterated accumulate name at a decreased goal worth of ₹487 from ₹553 earlier. Nevertheless, it has lower earnings estimates by 8 per cent every for FY26 and FY27.
Nevertheless, HDFC Securities has maintained scale back score at a goal worth of ₹425, including that elevated aggressive depth from Godfrey Phillips and resurgence of unlawful/contraband cigarettes amongst others may threat ITC’s cigarette quantity development over FY25-27.
- Additionally learn: NCC shares fall 10.63% on weak Q3 outcomes, Centrum downgrades outlook
