ITC shares surge to record high after robust Q3 earnings
On Thursday, ITC shares rallied more than 3% on the Bombay Stock Exchange (BSE) to hit an all-time high of ₹394 per share. This comes after a month-long rally that saw the stock rise over 16% compared to a 2% fall in the benchmark BSE Sensex. The FMCG major reported healthy Q3 earnings, and brokerages have remained bullish on its all-round performance.
Analysts attribute ITC’s strong quarter to robust all-round performance, with the cigarettes business growing by 18% YoY, aided by strong volume recovery. According to the company’s earnings statement, it sustained its growth momentum across all operating segments during the quarter, driven by a focus on accelerated digital adoption, customer centricity, execution excellence, and agility.
Jefferies, a global brokerage firm, had a positive outlook on ITC’s Q3 performance, stating that the 3-year cigarette volume CAGR at 6%+ was a key positive, and a benign tax environment should maintain the momentum. The FMCG growth was industry-leading, with a positive surprise on margins. The EBITDA growth remained strong at over 20%, as the company continues to recover from the pandemic. Jefferies also boosted EPS by 4-6% and raised its PT to ₹450, reiterating a Buy on ITC shares.
With three consecutive quarters of EPS upgrades, ITC’s outlook is positive, and investors are bullish on the stock’s future growth potential.
About ITC:
Established in 1910, ITC is the largest cigarette manufacturer and seller in the country. ITC operates in five business segments at present — FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri Business.
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