ITC Cigarette

Revenues from the non-cigarettes FMCG segment was at Rs 4,848.95 crore compared to Rs 4,099.47 crore

Post Q2 results, most brokerages have either recommended a 'buy' and an 'accumulate' rating on ITC with target prices in the range of Rs 365 to Rs 405

As part of the ITC Next strategy, we are making sure that the organisation remains agile, nimble and consumer-centric at all times

All analysts are bullish on the firm with target prices ranging from Rs 375 to Rs 490

The company attributed the performance to strong and broad-based growth across markets and channels

ITC's standalone revenue from operations rose 27% to Rs 17,160 crore in Q2FY23

However, the counter has lost over 5 per cent from its recent high of Rs 346.25 hit on September 23, 2022 and has underperformed the S&P BSE Sensex, which has lost nearly 2 per cent since then

ITC has launched two brands - Storii, in the boutique premium segment, offering immersive experiences, and Mementos, a collection of unique luxury properties across destinations

These companies that operated under the constraints of British rule before 1947 helped India become self-sufficient in various sectors after independence

FPIs holding in ITC increased to 12.68% in June quarter from 11.99% in the preceding quarter and 9.99% at the end of December quarter.

ITC Chairman and Managing Director Sanjiv Puri's three years in charge have seen structural shifts that steadied the cigarettes to hotels major against a tough business environment

Analysts say while valuations of global tobacco peers are back to pre-pandemic levels, ITC still trades at a 24% discount to its Jan 2019 valuation of 25.4x one-year forward EPS

A stable tax environment for cigarettes in recent years has allowed ITC to calibrate price increases to avoid a disruption in demand.

Steady cigarettes demand, rising agri exports, better prospects of hotels and paper businesses, low valuation and reasonable dividend yield key triggers

Though ITC is well-covered by consensus, whether it is well-understood has always remained a question, analysts believe

Decision by the panel on tobacco tax remains the key trigger

On the bourses, the stock of the cigarette-to-hotels conglomerate rallied 16 per cent on the BSE during the quarter under review, as against around 13 per cent gain in the benchmark S&P BSE Sensex

Consolidated revenue from operations stood at Rs 14,240.76 crore compared to Rs 10,478.46 crore reported in the same quarter last year

Analysts remain cautious on cigarettes and hotels businesses in the medium term. On the techncial charts, the stock is in the process of forming an 'Island Reversal Pattern'

The FMCG major's consolidated revenue from operations rose to Rs 15,404 crore