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.
Dolat Capital Report
ITC Ltd.'s Q1 FY25 results came in-line. Our analysis suggests that cigarette business reported ~3% volume growth – in line with our estimate. However, given consolidation of industry volumes on a high base, the business reported 7.6% sales compound annual growth rate over last five years. We expect near-term volume and market share gain in this business.
FMCG business reported 6.3% revenue growth with 30 bps expansion in Ebit margin. Notably, the FMCG business witnessed competitive intensity from local players.
We have maintained our FY25/26E EPS estimates at Rs 17.0/18.9 as Q1 performance was in line with our estimate.
Given the recent runup in stock price, we maintain ‘Reduce' rating with SOTP based target price of Rs 510 (earlier Rs 443). Buy on dips.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
