ITC Q4 Results Review - Strong Momentum Continues: Prabhudas Lilladher

"BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Prabhudas Lilladher Report.We increase our FY24/FY25 earnings per share of ITC Ltd. by 1.6%/1.4% as we roll over to FY25. Cigarette volume growth for Q4 was 12% supported by broad based premiumisation in longs and king size cigarettes. Near term looks favorable with expectations of mid-single digit volume growth. Although fast moving consumer goods margins got a boost due to production linked incentive and state incentives, FY24 should gain from benign input costs. Hotel outlook is positive due to G20 and revival in business and foreign tourist travel. Paper and paperboard segment was impacted due to weakness in market coupled with expansion related shutdowns, expect margins to recover from Q4 levels. While near term outlook is strong, we estimate 10.7% EPS compound annual growth rate over FY23- 25. ITC has scope to increase cigarette profitability as current Ebitda margins are 5% lower than peak margins. ITC trades at 22.8 times FY25 EPS with return on equity/return on capital employed of 30% plus/35% plus and ~80% plus dividend payout. .Click on the attachment to read the full report:.ITC Q4 Results Review - Cigarette Volume Grows, FMCG Margin In Top Gear: ICICI Direct.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

ITC Q4 Results Review - Strong Momentum Continues: Prabhudas Lilladher

Cigarette volumes up 12%, fmcg sales grow 19.4% with margins up 445 bps YoY.

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ITC Q4 Results Review - Strong Momentum Continues: Prabhudas Lilladher

Cigarette volumes up 12%, fmcg sales grow 19.4% with margins up 445 bps YoY.

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