ITC Ltd (ITC) Q4 Results Analysis: Buy, Sell, or Hold? Expert Insights on FMCG Giant’s Performance

<ul>
  <li>ITC Ltd.'s March quarter results were a mixed bag, but analysts at several brokerage firms continued to rate its stock as a 'buy,' citing stability in its cigarette business.</li>
  <li>Brokerages have set price targets for ITC between ₹435 and ₹515.</li>
  <li>"The stock declined around 1 percent to its day's low of ₹436.90 in intra-day deals today, Friday, May 24."</li>
</ul>
<p><strong>Discover why analysts remain bullish on ITC despite mixed Q4 results, with price targets ranging from ₹435 to ₹515.</strong></p>
<h2><strong>Q4 Results: A Mixed Performance</strong></h2>
<p>ITC reported a 1.3 percent YoY decline in its standalone net profit to ₹5,020.20 crore for the quarter ending March 2024, slightly below the ₹5,150 crore estimated by analysts in a Bloomberg poll. Despite weak demand, revenue from operations grew by 1.4 percent to ₹17,752.87 crore, surpassing the expected ₹17,191 crore. However, revenues from the agriculture, paperboards, and paper and packaging sectors declined, while overall expenses rose by 2.4 percent to ₹12,017.71 crore year-on-year.</p>
<h3><strong>Brokerage Opinions: Diverging Views</strong></h3>
<p>Emkay has a ‘buy’ call on ITC but adjusted its target price to ₹510 per share, considering the stress on cigarette margins. Emkay is bullish on ITC, citing better execution and supportive macro conditions for its diversified businesses, despite near-term cyclical pressures. The brokerage believes that better monsoons could enhance prospects for ITC's agriculture business and improve its cigarette margin outlook for FY26.</p>
<p>Motilal Oswal reiterated a 'buy' rating with a target price of ₹515 per share, indicating an 18 percent potential upside. The brokerage highlighted the resilient nature of ITC's core business amid an uncertain industry environment, and its 3-4 percent dividend yield makes the company a good defensive bet in the ongoing volatile interest rate environment.</p>
<h3><strong>Conclusion</strong></h3>
<p>Despite the mixed Q4 results, ITC remains a strong contender in the market with several brokerages maintaining a 'buy' rating. The company's stability in its cigarette business and potential for growth in other sectors keep it an attractive option for investors. As always, it's advisable to consult with certified experts before making any investment decisions.</p>
Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

BlockBeats: Newly Created Wallet Withdraws 3,001 ETH (~$13.9M) From Binance — Onchain Lens Alert (Sep 15)

COINOTAG News on September 15 reported that on-chain analytics...

Trump Calls Fed Chair Jerome Powell “Incompetent,” Blames Fed Policies for Weak Real Estate Market

COINOTAG News reports that on September 15th President Trump...

OP Token Unlock Leads Week’s $100M+ Releases — 116M OP (~$91.3M) Set to Unlock Sept. 21

COINOTAG reporting on September 15, citing Token Unlocks, identifies...

Ethereum Whale 0x172b Dumps 5,171 ETH ($23.8M) in One Hour — $206K Loss After FOMO Buy

COINOTAG News reported on September 15 that on-chain monitoring...

Polkadot DAO Passes Proposal #1710, Capping DOT Supply at 21 Billion with 81% Support to Reduce Emissions

The Polkadot DAO approved Proposal #1710 on September 15,...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img