NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
ITC Ltd.'s Q2 FY25 revenue was ahead of our estimate. Our analysis suggests that cigarette business reported ~3% volume growth – in line with our estimate. However, given consolidation of industry volumes on a high base, the business reported 8.7% sales CAGR over last five years. We expect near-term volume and market share gain in this business.
The agri business reported a strong 47% growth driven by leaf tobacco and value-added products contributing significantly to the overall revenue outperformance. In contrast, FMCG business reported 5.3% revenue growth with Ebit margin contracting 40 bps due to inflationary raw material costs and intense competition from local players.
We have maintained our FY25/26E EPS estimates at Rs 17.0/18.9 as Q2 profitability was in line with our estimate. We have also introduced FY27E EPS at Rs 20.8. Maintain ‘Reduce’ rating with a SOTP-based target price of Rs 510. Buy on dips.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
ITC Q2 Results Review - Resilient Print Despite Challenges; Retain 'Buy': Motilal Oswal
Oct 25, 2024
ITC Q2 Results Review - Agri-Business Surprises Again; Margins Take A Hit: Yes Securities
Oct 25, 2024
Why Grandparents’ Gold Jewellery May Not Impress Gen Z
Oct 11, 2024
Godrej Properties Gets 'Buy' From Nuvama After Q2 Pre-Sales Impress, Guidance Beat
Oct 07, 2024
POPULAR