Sales are expected to decrease by 3.9 percent Q-o-Q (up 13 percent Y-o-Y) to Rs 8884.7 crore, according to Motilal Oswal.
Sanjay Singh remains neutral because long-term prospects are quite fine but from a one year perspective, there could be some more downside.
The FMCG bellwether ITC reported its quarter three numbers. It was a rock solid, steady quarter from the company. Pretty much all the numbers were inline with what the street was expecting and on some parameters even marginally ahead than what the street was expecting.
V Srinivasan of Angel Broking says FMCG major ITC‘s Q3 results have come inline with the brokerage estimates. He recommends a buy on the stock with a target price of Rs 382.
Revenues growth is expected to be lead by price hikes taken by company for cigarettes business, but that steep price hikes may keep the pain in cigarette volume growth in the December ended quarter.
According to ICICIdirect.com, revenues of ITC are expected to increase by 10 percent Q-o-Q (up 12.1 percent Y-o-Y) to Rs 8549.9 crore.
According to Motilal Oswal, sales of ITC are expected to increase by 7.9 percent Q-o-Q (up 10 percent Y-o-Y) to Rs 8483.3 crore.
Kaustubh Pawaskar, FMCG Analyst, Sharekhan expects the stock to remain under pressure.
Gaurang Kakkad of Religare Capital Markets says, ITC could see a volume degrowth of 2-3% in cigarettes in Q2. However, if the company is able to post 16-18 percent EBIT growth in cigarette that would be viewed as a positive.
According to ICICIdirect.com, ITC may report a 13.8 percent growth quarter-on-quarter (up 17.3 percent Y-o-Y) in net profit at Rs 2,153.2 crore.
Cigarette business, which is the major driver for ITC - accounts for 40 percent of total revenues, will be closely watched by analysts. The street will watch cigarette volume trend post price hikes taken during the quarter and update on 64mm segment.
According to KR Choksey, ITC to report a 4 percent growth quarter-on-quarter (up 7 percent Y-o-Y) in net profit at Rs 1,969 crore.
According to Motilal Oswal, ITC to report a 10.5 percent growth quarter-on-quarter (up 13.8 percent Y-o-Y) in net profit at Rs 2,090 crore.
Varun Lohchab, Director, CIMB told CNBC-TV18 that the fall in the volume growth was muted but it was not unexpected. Going ahead he sees margins of the company at risk.
ITC saw a sharp slump in trade on Thursday. The company's April-June quarter net profit rose 18 percent year-on-year to Rs 1,891 crore, in-line with street expectations.
In an interview to CNBC-TV18, Sanjay Manyal, Research Analyst, ICICI Direct stressed that ITC's first quarter numbers clearly shows signs of a slowdown in cigarette sales volumes.
Analysts expect the company's revenue to rise 17 percent year-on-year to Rs 7,800 crore. Revenue from cigarettes is likely to increase 18-20 percent.
KR Choksey expects ITC to report a 2 percent degrowth quarter-on-quarter (growth of 18 percent year-on-year) in net profit at Rs 1888 crore.
Dolat Capital expects ITC to report a 0.7 percent degrowth quarter-on-quarter (growth of 21.2 percent year-on-year) in net profit at Rs 1942 crore.
Motilal Oswal expects ITC to report a 4.5 percent degrowth quarter-on-quarter (growth of 14.9 percent year-on-year) in net profit at Rs 1841.6 crore.
Antique Stock Broking has downgraded ITC to "hold" from "buy", saying it is not expecting any further re-rating on the stock. It has a target price of Rs 356 on the India's largest cigarettes company
ITC is expected to report a net profit of Rs 1,910 crore, up 18 percent year-on-year, while net sales are likely to increase 17 percent to Rs 8,025 crore, according to a CNBC-TV18 poll. Cigarette volumes are seen up 1.5 percent.
Varun Lohchab, managing director and co-head of research, Religare Capital Markets, says that FMCG major Hindustan Uniliver Limited (HUL) is likely to post muted volume growth in the fourth quarter on back of weak signs that can be witnessed in personal care, soaps and detergent segments.
Several analysts on Monday maintained a "buy" or equivalent rating on ITC after the cigarettes to FMCG and hotels major reported a forecast beating 21 percent year-on-year rise in third quarter net profit.
Varun Lohchab of Religare Capital Markets who tracks the fast-moving consumer goods (FMCG) space shared his outlook on that. He said, ITC Q3 numbers were in line with expectations .The PAT grwoth was a bit above expectation and even the non-tobacco FMCG growth surprised positively, he added.