ITC Q2 Results Review - Agri-Business Surprises Again; Margins Take A Hit: 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. Q2 FY25 operating performance was a mixed bag again with beat on topline but margins missed our estimates. Topline growth of 16.8% was supported by strong 47% growth in agri-business driven by value added agri products and leaf tobacco. Progressive scale-up of export shipments of Nicotine and Nicotine derivative products should provide further aid for the segment. Cigarette business was in-line with ~3% estimated volume growth. At an overall level, sharp inflation in key inputs and unfavorable mix dragged margins (Ebitda margin down 370 bps YoY). Going forward, stability in taxes for cigarettes and recovery in rural markets should support growth while it continues to face pressure on margins in the very near-term from inflation in key commodities. Based on target multiple of ~25 times (three years/five years average forward multiple ~23 times/21 times) on Mar’27E EPS, we arrive at a target price of Rs 540. Maintain Add..Click on the attachment to read the full report:.ITC Q2 Results Review - Margins Fails To Impress; Reduce; Buy On Dips, Says Dolat Capital.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 Q2 Results Review - Agri-Business Surprises Again; Margins Take A Hit: Yes Securities

Going forward, stability in taxes for cigarettes and recovery in rural markets should support company's growth, says the brokerage.

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ITC Q2 Results Review - Agri-Business Surprises Again; Margins Take A Hit: Yes Securities

Going forward, stability in taxes for cigarettes and recovery in rural markets should support company's growth, says the brokerage.

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