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ITC Share Price Target: FMCG major ITC has announced its results for the December quarter on January 29. After the result, on January 30, the stock was trading at the level of Rs 440 (ITC Share Price Today) with a decline of 2.5 percent. The company has also declared a dividend of 625%. Let’s know what investors should do in this stock after the result.
ITC Share Price Target After Q3 Results
Gross revenue rose 2.1 per cent to Rs 17483 crore, according to information available on the NSE website. Net profit rose 10.8 per cent to Rs 5572 crore, profit before tax rose 0.7 per cent to Rs 6725 crore and EBITDA declined 3.2 per cent to Rs 6024 crore. The performance of the FMCG segment was resilient. The cigarette business is consolidating. The December quarter has been the most spectacular for the hotel business so far. Revenue grew 18% YoY and Profit Before Tax grew 57% YoY. Agriculture has been negatively impacted.
ITC Dividend Details
ITC has also announced a dividend of 625 per cent along with the results. Based on the face value of Re 1, the company has declared a dividend of 625 per cent i.e. Rs 6.25 per share. The record date for this dividend has been fixed on February 8 (ITC Dividend Record Date). The dividend will be paid between February 26-28. The dividend yield is close to 3.5%. This means that if an investor invests Rs 10,000 in this stock, then he will get Rs 350 as a dividend every year.
The domestic brokerage has given a target of Rs 535
After the Q3 results, domestic brokerages have given different targets regarding ITC share price target. Motilal Oswal has maintained buy advice and has given target of Rs 515. Emkay Global has maintained its buy advice and has given a target of Rs 520. Sharekhan has given buying advice and an unchanged target of Rs 515. Nuvama has reduced its buy advice and target to Rs 535 from Rs 560.
Brokerage’s updated target price for ITC shares
Axis Securities has given a target of Rs 500 and advised buying. Yes Securities has given a rating of ADD and a target of Rs 450. HDFC Securities has given the rating of ADD and the target price of Rs 460. Systematix is offering a buyback offer of Rs. 519. Dolat Capital has downgraded the rating to REDUCE and has given a target of Rs 464.
ITC share price target updated
Talking about the global brokerage, Jefferies has reduced the buy advice and target from Rs 540 to Rs 520. Citi has given buying advice and a target of Rs 500. Goldman Sachs has cut its buy advice and target to Rs 490 from Rs 500. JP Morgan has given a rating of overweight and a target of Rs 490, CLSA has given a rating of outperform and a target of Rs 486. Prabhudas Lilladher has reduced the rating and target price of Accumulate to Rs 489 and Rs 450.
Why is it advisable to buy Nuvama?
Nuvama said in its report that revenue and profit were better than expected, but EBITDA was weaker than expected. The volume of cigarette business has declined. The growth of the second segment of FMCG was limited due to the high base. The hotel business demonstrated a break-through and revenues increased by 18%. The all-time high revenue was recorded so far. Agribusiness showed the impact of the global supply crisis. The FMCG vertical has shown resilience.
What does the management say?
“Inflation is moderating, growth outlook looks stable. Tax collection is very high. Banking and corporate balance sheets are strong. The government is spending on infra, and forex reserves are healthy. These are supportive of sustaining demand in the FMCG segment. On the other hand, geo-political crisis, agri-commodity inflation, recovery in rural demand, seasonal shocks are negative factors.
ITC Share Price Target After Q3 Results: FAQs
- What were the key highlights of ITC’s Q3 results? ITC’s Q3 results showcased robust revenue growth, driven by strong performances across its diversified business segments. The company also reported enhanced profitability and operational efficiency amidst challenging market conditions.
- How have investors responded to ITC’s Q3 results? Investor sentiment towards ITC following its Q3 results has been generally positive, reflecting confidence in the company’s strategic initiatives and growth prospects.
- What are expert forecasts regarding ITC share price target post-Q3 results? Expert forecasts for ITC’s share price target post-Q3 results vary, with some analysts projecting bullish trends based on strong financial performance and market fundamentals.
- How do regulatory factors impact ITC’s share price outlook? Regulatory factors, particularly those related to the tobacco industry, can influence investor sentiment and market dynamics, potentially impacting ITC’s share price trajectory.
- What role does market sentiment play in determining ITC share price target? Market sentiment plays a significant role in determining ITC share price target, with positive industry trends and investor confidence driving upward momentum in the stock price.
- Are there any upcoming catalysts that could impact ITC’s share price? Potential catalysts such as new product launches, strategic partnerships, or regulatory developments could impact investor sentiment and influence ITC’s share price in the near term.
Conclusion: Navigating the Path Ahead
As investors assess ITC’s Q3 performance and its implications for future growth, expert forecasts and market dynamics will shape the trajectory of its share price. By staying attuned to industry trends, regulatory changes, and competitive positioning, investors can make informed decisions regarding their investment in ITC.