A Close Look at ITC’s Q3 Results

By Aditya Raghunath

Investing.com — FMCG major ITC Ltd (NS:)recently reported its results for the third quarter of FY21, ended December 2020. Sales grew by 6.1% year-on-year to Rs 14,124.48 crore. Consolidated profit fell 11.4% to Rs 3,587.09 crore fell 6% to Rs 3,663 crore. The cigarette business’ revenue, which is 43% of ITC’s total revenues, came in at Rs 6,091.17 crore compared to Rs 5,944.86 crore in the corresponding quarter last fiscal.

FMCG-Others segment saw growth increase 13% to Rs 3,752.61 crore while its hotel business saw a massive 56.7% decline to Rs 248.87 crore thanks to the impact of the pandemic.

The stock was trading at Rs 229 on February 9 before the result. It has now fallen 5.24% to close February 12 at Rs 217.6.

While the markets are not enthused about the stock, brokerage firms certainly are. Sharekhan maintains a ‘buy’ recommendation with a target price of Rs 265. It says that a sustained scale-up in the cigarettes business would be the reason for a significant uptick in the stock. The non-cigarette business is also expected to show better growth in the coming quarters.

CLSA also has a target of Rs 265 on the stock on the back of a strong cigarette recovery. Prabhudas Lilladher has a target of Rs 254 on ITC stock while Citi is neutral with a price target of Rs 215.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *