ITC share price rises 3% today. Check brokerage views and what should investors do?
Shares of ITC Ltd gained over 3% in intraday trade on Friday, bouncing back from a subdued earnings report that initially triggered caution among analysts.The stock was trading 2.78% higher at Rs 437.95, recovering from Thursday's close of Rs 426.10, as investors appeared to focus on the company's long-term fundamentals rather than short-term headwinds.ITC reported a modest 0.8% year-on-year rise in standalone net profit for the March quarter, at Rs 4,874.7 crore. But including exceptional gains of Rs 15,179.4 crore, largely due to the demerger of its hotels business, the headline profit surged to Rs 19,561.6 crore.advertisement
Revenue grew 9.6% from a year ago to Rs 17,248.2 crore. The company also declared a final dividend of Rs 7.85 per share for FY25. The reported figures came with a caveat. ITC restated results for FY24 and FY25, making historical comparisons less meaningful.BROKERAGES ON ITC Q4 RESULTSBrokerages have responded by tempering expectations. While some continue to back the stock on the strength of its cigarette business and potential recovery in FMCG, others raised concerns over margin pressure and sluggish growth in non-tobacco segments.Antique Broking cut its EBITDA estimates for FY26 and FY27 and trimmed its target price to Rs 497, though it retained a 'buy' stance. Nirmal Bang reversed a previous upgrade and now recommends a 'hold', citing limited profit visibility in the near term.JM Financial noted that while cigarette volumes remain steady, input cost pressures and marketing spends have dented margins, prompting a downward revision in its target price to Rs 500. Other firms including Nuvama, Elara, and HDFC Securities also pared their estimates and valuations, flagging heightened competition and challenges in FMCG.advertisementDespite these concerns, the stock found support as investors looked past the short-term noise. Analysts say valuations remain reasonable at 25 times FY26 earnings, with hopes pinned on easing raw material costs and improving rural demand in the months ahead.For now, market watchers suggest keeping an eye on the pace of FMCG recovery and any further signs of pricing strength in the cigarettes business. While the best of margin expansion may be behind, ITC's solid cash flows and consistent dividends continue to appeal to long-term investors.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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Time of India
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an hour ago
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