Profit was largely driven by other income that increased 30 percent YoY to Rs 836.4 crore in Q3
We believe that the thesis of broadening of growth levers for ITC is unfolding as expected. Few of ITC’s other businesses have witnessed encouraging growth traction in recent times: volume growth in the FMCG business and growth outlook in the hotel and paper business.
Revenue from operations in Q3 grew by 15 percent year-on-year to Rs 11,227.66 crore, driven by gross across segments.
It has retraced marginally of late and reached closer towards its immediate support zone placed around Rs 290 levels.
Cigarette, the key business which contributes more than 40 percent to total revenue, is expected to deliver 4-6 percent growth in volumes on a low base of 5 percent drop during Q3FY18, according to brokerages
Continue with a stock-specific trading approach in the meanwhile and maintaining positions on both sides. Also, keeping close watch on earnings announcements and global markets for cues.
Net Sales are expected to increase by 9.3 percent Y-o-Y (down 3.5 percent Q-o-Q) to Rs. 10,683.1 crore, according to Prabhudas Lilladher.
Traders can accumulate the stock in a range of Rs 292-297 for the upside target of Rs 313 levels and a stop loss below Rs 280, says Shitij Gandhi of SMC Global Securities.
On weekly chart, it is trading above important moving averages and the overall setup making it a prudent buy for short term.
This also sets a reference for future as the GST legislation provides for levy of special taxes for a specified period to raise additional resources during any natural calamity or disaster. And hence, on each such occasion tobacco companies may not be on the receiving side.
The breadth of the market favoured the declines with 647 stocks advancing and 973 declining while 440 remained unchanged. On the BSE, 965 stocks advanced, 1291 declined and 168 remained unchanged.
CLSA retained buy call and increased target price by Rs 10 apiece as the risk-reward is highly attractive & stock offers downside protection.
The breadth of the market favoured the advances with 825 stocks advancing and 721 declining while 507 remained unchanged. On the BSE, 987 stocks advanced, 771 declined and 95 remained unchanged.
Net Sales are expected to increase by 8 percent Y-o-Y (down 4.1 percent Q-o-Q) to Rs. 10,449.1 crore, according to Kotak.
Macquarie said earnings growth recovery would lead to re-rating in ITC.
The research firm believes that the market risk is on the downside in near term, and there could be a lag in capex and housing recovery as well.
As per Elliott Wave Theory, next 3 days are crucial for Indian markets. If we manage to cross 10,950 it would send the market to the next biggest hurdle, which is at 11,200-11,300.
Morgan Stanley continues to back growth at a reasonable price and believes the way to construct portfolio is to buy stocks of companies with the highest delta in return on capital
"These differentiated varieties promise to further benefit India's farmers and the potato processing industry as well as help in promoting potato exports. The agreement is initially for a period of five years and is extendable," ITC said in a statement.
Karvy is of the view that the formation of a business-friendly government would help drive the next rally in equities. Our target for Nifty for December 2019 is 14,000,
With the state election results around the corner and general elections in 2019, there will be an increase in volatility across the midcap segments, says Manav Chopra of Indiabulls Ventures
FMCG experts said it is a go-to-market strategy for these companies to promote their products first on an e-commerce portal to create the buzz about the product and judge customer behaviour
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 23.5 points or 0.22 percent. Nifty futures were trading around 10,758-level on the Singaporean Exchange.
For the last few years, the surge in agri business and rural sales has been the driving factor of future growth potential of FMCG businesses in India. Rural contributes 35-40 percent of overall sales value.