ITC Q4 Results: 5 Top Brokerages’ Advice on Buying, Selling, or Holding FMCG Major

Analyzing the latest quarterly results of ITC, investors are pondering over whether to buy, sell, or hold onto the FMCG giant’s stock. On May 24th, the stock experienced a slight decline of about 1 percent, reaching ₹436.90, marking a 12.5 percent decrease from its peak last July. However, it has shown an increase of over 9 percent from its low in March 2024.

Over the past year, the stock’s performance has been relatively flat, with only a 1.5 percent increase, and it has seen a decline of more than 5 percent in 2024. While there were slight gains in April and March, January and February showed losses.

Review of Q4 Results

In terms of the fourth-quarter results, ITC witnessed a minor dip in standalone net profit, down 1.3 percent year-on-year to ₹5,020.20 crore, which was slightly below analyst estimates. However, revenue from operations saw a 1.4 percent increase, surpassing expectations. On the flip side, expenses also saw a rise.

For the entire year, the gross revenue remained stable, while profit saw an increase of 8.9 percent. Additionally, the company proposed a final dividend of ₹7.50 per share.

Brokerage Recommendations

Emkay: They’re saying to buy ITC shares, but they’ve lowered their target price to ₹510 per share. They’re optimistic about ITC’s performance because of better execution and favorable economic conditions, even though there might be some challenges in the short term. They believe that improved monsoon conditions could help ITC’s agriculture business and boost its profits from cigarette sales in the future.

Motilal Oswal: They’re also advising to buy ITC shares, with a target price of ₹515 per share. They think ITC is a good choice because its main business is strong and it pays a decent dividend. They don’t see any big changes in ITC’s earnings in the next couple of years.

CLSA: They used to say to buy ITC shares, but now they’re saying to just ‘outperform’ them. They’ve set a target price of ₹470 per share. They’re a bit worried because some parts of ITC’s business, like paper and agriculture, aren’t doing so well right now. They’ve also lowered their estimates for how much money ITC will make in the near future.

Citi: They’re still saying to buy ITC shares and they’ve increased their target price to ₹515 per share. They’re keeping an eye on any changes in taxes or rules that might affect how much money ITC makes. They mentioned that ITC’s profits from selling cigarettes might be a bit lower than expected.

Jefferies: They’re saying to hold onto ITC shares for now. They think the price will stay around ₹435 per share, which is about the same as it is now. They noticed that ITC sold more cigarettes than expected, but other parts of its business, like agriculture and making paper, didn’t do as well as hoped in the last three months. They think the government’s budget announcement might have a big effect on ITC’s share price.