Stock to buy: ITC Limited, a legendary FMCG sector company, has announced the results of the third quarter of 2024-25. The company’s results have been weak. However, the company has pointed to the initial signals of improvement in urban markets. While the growth speed continued in rural markets.
ITC’s profit in the December quarter declined by 7.5% to Rs 4,935 crore on an annual basis. It was Rs 5,335 crore in the same quarter of a year ago. It was 1.16 percent less on a quarterly basis. At the same time, Bloomberg had estimated the company’s profit to be Rs 5,299 crore.
However, due to no increase in tax on the company’s cigarettes and estimates of sustainable growth in business, most brokerage Motilal Oswal has advised to buy ITC Limited.
ITC: Target Price 550 | Rating Buy | Upside 28%
Brokerage firm Motilal Oswal (Motilal Oswal) Has retained its BUY rating on ITC Limited. Brokerage has set a target price of Rs 550 on stock. In this way the stock can show 28 per cent upside in the future. IT shares closed at Rs 431 on Friday.
According to brokerage, the main business of ITC’s cigarette has shown a stable performance. With no increase in tax on cigarettes, we are expecting a permanent growth in this business.
Motilal Oswal said that while the FMCG sector is seeing softening due to rising commodity prices, the ITC is taking advantage of a leading increase in the industry compared to competitors due to its category presence. We repeat our BUY rating on ITC keeping our SOTP-based target price at Rs 550.
How to remain Q3 results of ITC?
Cigarette to soap -making FMCG company ITC declined by 7.27 percent to Rs 5,013.16 crore in the consolidated net profit in the third quarter of the current financial year. ITC said in the information given to the stock market that the company had an integrated net profit of Rs 5,406.52 crore in the same quarter of the last financial year.
ITC’s operational income in the October-December quarter of FY 2024-25 increased by 9.05 percent to Rs 20,349.96 crore, which was Rs 18,660.37 crore in the last financial year.
The total expenditure in the third quarter of the current financial year increased by 12.18 percent to Rs 14,413.66 crore. The total income of ITC rose by 8.47 percent to Rs 20,945.82 crore in the quarter, which was Rs 19,308.85 crore a year ago.
ITC share history
The IT stock has been under pressure for some time. Stock performance has been almost flat in the last 1 month. At the same time, more than 7% has fallen in the last six months. Whereas in the last one year the stock has climbed more than 5%. The 52 week high of the stock is Rs 500 and 52 weeks is Rs 377. The market cap of stock on BSE is Rs 5,39,129 crore.
(Disclaimer: Brokerage has advised shopping in the stock here. Investment in the market which is subject to Khimon. Consult your advisor before making investment decisions.)