ITC Q1 Results Review - A Mixed Bag; Maintain Add: Yes Securities

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..Yes Securities Report.ITC Ltd.'s Q1 FY25 operating performance was a mixed bag with beat on topline but margins missing our estimates for the quarter. Topline growth of 7.4% was supported by strong 22.2% growth in agri-business driven by value added agri products, leaf tobacco and wheat. Progressive scale-up of export shipments of Nicotine and Nicotine derivative products post trials should provide some further aid for the segment. Paperboards, paper and packaging came lower than our estimate but green shoots of recovery in domestic demand are visible ahead of the festive season. Cigarette and FMCG-others business saw minor deviation growing at 6.1% (we believe with a ~2% volume growth) and 6.3% YoY, respectively. Stability in taxes and recovery in rural markets should support growth while it continues to face pressure on margins in the very near-term from commodities in key business segments. Based on target multiple of ~26 times (three year/five year average forward multiple ~22 times /20 times) on Sep-26E earnings per share, we arrive at a revised target price of Rs 545 (Rs 500 earlier). Maintain Add. .Click on the attachment to read the full report:.ITC Q1 Results Review - Resilient Cigarette, But Muted FMCG Performance: Motilal Oswal .DISCLAIMERThis 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.

ITC Q1 Results Review - A Mixed Bag; Maintain Add: Yes Securities

Stability in taxes, recovery in rural markets should support growth while ITC continues to face pressure on margins in the very near-term from commodities in key business segments, says the brokerage.

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ITC Q1 Results Review - A Mixed Bag; Maintain Add: Yes Securities

Stability in taxes, recovery in rural markets should support growth while ITC continues to face pressure on margins in the very near-term from commodities in key business segments, says the brokerage.

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