ITC Stock Investment: Experts believe that the quarterly numbers are good but not very encouraging from the point of view of FMCG business. The company will get more benefits as there is no new tax on cigarettes in the budget. Share valuation is cheap
What is the opinion of experts?
Market expert Barinder Bhansal says ITC’s quarterly numbers were good. But not very encouraging. FMCG did not do well. The company has done well in the cigarette and agri segment. Cigarettes have benefits. Cheap stock. That’s very good. Bonsal says there is a revival in FMCG. The amount of cigarettes increased by 12%. Input pressure is increasing in FMCG. The margins of this segment have come down.
Santosh Meena, head of research at Swastika Investmart Limited, said that profit booking was seen in the share price of ITC today. However, the stock has started trading in a positive mode. Speaking of the company’s earnings, it was better than expected in many parameters. However, the stock is in the range bound range of 235-240. The budget did not increase taxes on cigarettes. This is positive for the company.
Meena said that technically the 240-245 level is an important supply area for the stock, while the 100-DMA at the 228 level is an immediate support. Below this, support is visible at 221 levels. The 210-200 level is a strong foundation for long-term stocks. If the stock breaks below this level, it may weaken. At the same time, the 245 rupees level is important. If this break occurs, the 265/300 level stock may show further.
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What is the opinion of brokers
Following the ITC’s December quarterly results, global brokerage firm CLSA has maintained its buying opinion on the stock. 285 purchase targets have been given. Morgan Stanley has set a target of Rs 251 with an overweight rating. At the same time, Jefferies gave a purchase opinion and increased the target price from Rs 300 to Rs 305. JP Morgan has a neutral rating with a target price of Rs 238. CITI stock also maintained a neutral position and set a target of Rs 245.
Domestic brokerage firm Motilal Oswal has a neutral rating on ITC. The target price of the stock has been kept at Rs 245. The brokerage said the company’s EBITDA was up in the December quarter. The amount of cigarettes has been better than expected. ICICI Securities has given ADD rate on the stock. The target of the stock is 260 rupees.
ITC: What was the quarterly result like?
FMCG company ITC released its quarterly results on Thursday. The company’s net profit rose 12.69 per cent to Rs 4,156.20 crore. The company had posted a net profit of Rs 3,687.88 crore in the same quarter a year ago. The company’s revenue from sales of goods rose 31.25 per cent to Rs 16,633.86 crore. 12,673.31 crore in the December quarter a year ago. The company has declared an interim dividend of Rs 5.25 per share.
(Disclaimer: The investment advice here is provided by the brokerage house. This is not a G-Business opinion. Please consult your advisor before investing.)