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.
Motilal Oswal Report
ITC Ltd.'s revenue growth of 1.6% in Q3 FY24 came in significantly below our estimate of 5.7% growth, as cigarette volume declined 1-2% YoY (estiamte: 2% growth) on a high base of 15% growth in Q3 FY23. The four-year volume compound annual growth rate stood at 5%. The premium cigarette segment continued to outperform, while the value segment saw weakness.
The performance of other fmct segments remained resilient, with 7.3% revenue growth. The contribution of digital and modern trade businesses was significant at 31% of revenue.
Despite rising competitive pressure (local, regional players) and weak demand, ITC sustained Ebitda margin expansion.
The agri business continued to be impacted by government restrictions. The paper segment is facing challenges, including demand issues, competition from China, lower pulp prices, and higher input costs, although signs of a sectoral revival are emerging.
The hotel segment posted a robust performance, with strong growth in the average room rate and occupancy.
We retain our 'Buy' rating on ITC as we believe its earnings visibility remains better than that of peers. Our target price of Rs 515 is based on SoTP valuations.
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.
