Diversified conglomerate ITC Ltd. shares gained three percent during the April 23 session, after reporting its earnings show for the quarter ended March, with net profit remaining flat on-year amidst a subdued demand environment and sharp escalation in input cost.
ITC reported a net profit Rs 19,562 crore for the fourth quarter of FY25, which includes a one-time exceptional item of Rs 15,179 crore from discontinued operations. Excluding the gains, net profit of the India’s largest cigarette-maker rose marginally, up 0.8 percent YoY at Rs 4,875 crore.
The firm’s standalone revenue from operations meanwhile rose to Rs 18,494 crore from Rs 16,907 crore in the same quarter last year.
At 11.30 am, ITC shares were quoting Rs 438.65 per share, higher by 2.9 percent compared to the previous session.
The conglomerate said it expects consumption expenditure is expected to pick up progressively led by continued recovery in rural demand backed by a good monsoon, along with improvement in urban demand amidst lower inflation levels and tax cuts announced in the Union Budget, which is expected to boost disposable incomes.
Should you buy, sell, or hold ITC shares?
International brokerage Goldman Sachs reiterated its 'buy' call, with a price target of Rs 490 per share. The brokerage noted that while the cigarette business delivered steady growth, the margins declined due to high tobacco inflation. FMCG margins are poised to improve as palm oil prices have reduced sharply.
HSBC has given a 'buy' call on ITC with a target price of Rs 510 per share, noting that the company's fourth-quarter performance was in line with expectations. There was a sequential improvement in margins in the FMCG business, although overall growth remains subdued. The brokerage remained bullish on ITC for its attractive valuations, within a stable tax environment.
CLSA maintained an 'outperform' rating on ITC with a target price of Rs 496 per share. The brokerage said that the FMCG major delivered a 9 percent year-on-year revenue growth in the latest quarter, which was 3 percent higher than its estimates.
Emkay Global maintained 'add' on ITC, increased its target price to Rs 475, with expectation of an accommodative stance by the government on taxation, which would help clock a mid-single digit cigarette volume growth.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
