Net profit rose marginally to Rs 4,993 crore, marking a 2% increase.
The profit was slightly below Street estimates of Rs 5,079 crore, while revenues beat the expectations of Rs 18,068 crore.
The company’s board approved the acquisition of 1.52 crore shares of EIH Ltd and 34.6 lakh shares of HLV Ltd from Russell Credit, a wholly-owned subsidiary of the company. This is being done to consolidate the shareholding of EIH and HLV under the company.
Post the Q2 results, here is what brokerages say:
Goldman Sachs: Buy | Target price: Rs 525
Goldman Sachs has maintained a buy rating on ITC while hiking the target price to Rs 525 from Rs 515Q2 was a steady quarter in a tough consumption environment with good growth in the cigarette business, however, FMCG business margins were under some pressure from rising input costs. The agri business had a strong quarter, paper further weakens while hotels remain healthy.
Nuvama: Buy| Target price: Rs 585
Nuvama retained its buy view on ITC with a revised target price of Rs 585 against Rs 580 previously
ITC’s Q2FY25 revenue (up 16.8% YoY) beat the estimates driven by the Agri business. However, EBITDA and PAT came in line with the estimates. Factoring in strong growth in leaf tobacco exports and the value-added agri portfolio in H1FY25, Nuvama has increased FY25E/26E/27E EPS by 2%, 2.7% and 3.2% respectively.
HDFC Securities: Reduce| Target price: Rs 420
HDFC Securities maintained its reduce rating on the stock while hiking the target price to Rs 420 from an earlier Rs 405
The rating is maintained due to , as consensus cigarette volume growth assumptions (3-4%) for ITC’s business over FY25-27 are at significant risk due to several factors. Moreover, HDFC Securities believes that the best margin expansion in ITC’s FMCG business (from 7% in FY20 to 11% in FY24) is behind us, with future margin gains expected to be more gradual.
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