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.
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.
For More Latest News Click Here