Shares of ITC declined shut to three per cent on posting a 7.27 per cent decline in consolidated internet revenue to ₹5,013.16 crore for the December quarter 2024.
Nonetheless, its income from operations rose by 9.05 per cent to ₹20,349.96 crore for the quarter below assessment.
ITC inventory was the main 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 Resorts emerged amongst prime gainers. closing 3.73 per cent optimistic at ₹178.53 on the NSE.
Most brokerages have maintained their stance highlighting cigarette quantity progress, however lowered goal costs and EPS estimates because of weak margins, muted FMCG efficiency and resort enterprise demerger.
International brokerages JP Morgan and Morgan Stanley have reiterated chubby calls on the inventory on the goal costs of ₹505 and ₹578, respectively, quoting that the cigarette progress quantity as a key shock and the income was in-line, however margins have been a tad tender.
- Q3 outcomes dwell: Bharti Airtel lead positive aspects, BSE up 2%, NCC inventory tumbles 14% put up Q3 outcomes
Nuvama Institutional Equities is cautious in close to time period given the continuing city slowdown, inflation in key uncooked materials and weak profitability in FMCG and paperboards, paper & packaging section. Stating that the Q3 outcomes have been in-line with estimates, the brokerage has retained purchase on the goal value of ₹571.
Noting ITC’s announcement of buying Prasuma, Nuvama believes it shall assist the corporate develop into a full-stack participant within the frozen meals section.
Analysts of Motilal Oswal have reiterated purchase score at a goal value of ₹550 and slashed the EPS estimates by 4 per cent for FY25 and 5 per cent for FY26, primarily because of the impression of resort enterprise demerger. Motilal anticipates sustainable progress in cigarettes enterprise, whereas including that FMCG is seeing moderation because of rising commodity costs.
In the meantime, analysts of JM Monetary stated that the demerger ought to scale back the capex depth and support enchancment in return on invested capital (ROIC). The brokerage has pared the goal value from ₹550 to ₹515, sustaining a purchase.
Elara Capital emphasised that EBIT progress in cigarettes and FMCG took successful because of increased enter value, which was partly offset by agri companies. The brokerage is optimistic as ITC continues to ship regular progress amid subdued demand. It has reiterated accumulate name at a lowered goal value of ₹487 from ₹553 earlier. Nonetheless, it has reduce earnings estimates by 8 per cent every for FY26 and FY27.
Nonetheless, HDFC Securities has maintained scale back score at a goal value of ₹425, including that elevated aggressive depth from Godfrey Phillips and resurgence of unlawful/contraband cigarettes amongst others may threat ITC’s cigarette quantity progress over FY25-27.
- Additionally learn: NCC shares fall 10.63% on weak Q3 outcomes, Centrum downgrades outlook
