<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>
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