Emkay Global Financial's research report on ITC
We hold a positive stance on ITC, heartened by its improved management execution, ahead-of-time investment in businesses, and leadership position in most segments. Overall revenue fell 8% in Q1, while growing 11% adjusted for Agri revenue; Cigarettes net sales grew 11% (volume growth estimate: ~8%) and Other FMCG sales growth was a healthy 16%. Cigarettes EBIT grew 11% YoY (as it navigates margin pressure well), with EBIT margin at 74.2%, up by ~20bps YoY. Other FMCG EBITDA margin stands at 11%, up by 375bps YoY (PLI benefit: 30-40bps). We see double-digit EBIT growth for Cigarettes and healthy EBITDA expansion for the Other FMCG segment, going forward.
Outlook
We uprear our earnings estimates for Cigarettes by 3%, on better pricing power/margins; this hoists our SOTP-based Jun-24E TP to Rs 535/share (vs Rs525 earlier).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that 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, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
