ITC’s stock soared by 2% to reach a 52-week high of Rs 3,453.70 following the announcement of its Q4 FY24 results. Despite a 4% year-on-year decline in net profit to Rs 5,120.55 crore, compared to Rs 5,335.23 crore in Q4 FY23, the company’s resilience in its core business garnered positive attention. FMCG revenue slightly dipped to Rs 19,446.49 crore from Rs 19,484.50 crore in the corresponding period last year. Here’s how brokerages are assessing the company’s performance:
Motilal Oswal:
Motilal Oswal largely maintained its earnings per share estimates for FY25 and FY26. Highlighting ITC’s defensive stance amidst industry uncertainty, the brokerage reiterated its “Buy” rating with a target price of Rs 515, emphasizing the company’s steady 3-4% dividend yield.
Prabhudas Lilladher:
Prabhudas Lilladher observed a mixed demand scenario, particularly in the mass segment across cigarettes and FMCG. Despite challenges, they anticipate a 4% volume growth in cigarettes for FY25 and FY26. With expectations of margin expansion in the FMCG sector and continued growth in the hotels segment, the brokerage retained an “Accumulate” rating on the stock, raising the target price to Rs 491 from Rs 488. Elara Securities predicts an improvement in paper margins post-Q1 and anticipates an expansion in ITC’s agri business margins in the second half of FY25, driven by high leaf tobacco prices.
