ITC share price trades flat ahead of Q3 results today. Should you buy, sell or hold?
ITC share price opened at ₹456.00 apiece as compared to its previous close of ₹455.45 on the BSE. ITC shares has gained just 5% in the past three months, while the stock is up more than 34% in one year.
According to analysts, the cigarettes to hotels conglomerate is likely to benefit from consistent volume growth in both its cigarette and non-cigarette FMCG business during the December quarter, complemented by robust momentum in the hotels segment, which is likely to contribute to the company’s earnings. Read here: ITC Q3 preview: Net profit likely to rise over 3%, revenue up by 5% The cigarette manufacturer may post decent numbers in Q3FY24 due to the higher share of food and beverages in its product basket that will help the conglomerate mitigate weak rural demand for FMCG due to erratic monsoon and high inflation, said Parth Shah, Research Analyst, StoxBox.
Moreover, due to the festive season, ITC’s hotel segment is expected to have robust growth in the third quarter. “We expect ITC’s cigarettes segment to continue to record a healthy revenue growth of around 15-20% and stable margins, aided by the relatively stable tax regime.
Despite headwinds in the form of commodity cost inflation, we believe ITC’s profitability to remain intact in Q3FY24," said Shah. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) ITC is expected to report a net profit of ₹5,183 crore for the quarter ending December 2023, registering a growth of 3% from the corresponding quarter in the previous fiscal year, as per estimates by several brokerage firms.
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