- ITC Ltd reported a net income of 56.4 billion rupees for the third quarter, which is a 1.2% increase year-over-year and beats the estimate of 52 billion rupees.
- The company generated total revenue of 182.9 billion rupees, marking an 8.5% growth year-over-year, though slightly below the estimated 184.57 billion rupees.
- Revenue from cigarettes reached 81.4 billion rupees, growing by 7.8% and surpassing the estimated 79.15 billion rupees.
- The FMCG sector, excluding cigarettes, contributed 54.2 billion rupees to revenue, with a 4% increase year-over-year, aligning closely with the estimate of 54.11 billion rupees.
- The agriculture business reported revenue of 33.5 billion rupees, up 9.8%, but fell short of the 39.97 billion rupees estimate.
- The paper business reported a revenue of 21.4 billion rupees, with a 2.9% increase, exceeding the estimated 20.73 billion rupees.
- Raw material costs amounted to 59.4 billion rupees, which is a 7% increase but below the estimated 72.82 billion rupees.
- Total costs rose by 12% year-over-year to 128.3 billion rupees.
- Other income decreased by 3.8% to 10.87 billion rupees.
- A dividend of 6.50 rupees per share was declared.
- The third quarter included a one-time gain of 5.28 billion rupees from a fair value gain on shares acquired from EIH and HLV.
- The board proposed a new Employee Stock Appreciation Rights Scheme, earmarking 2% of the issued share capital.
- The company holds favorable ratings with 34 buy recommendations, 4 hold, and 2 sell.
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ITC Ltd on Smartkarma
Independent analysts on Smartkarma have provided bullish coverage on ITC Ltd‘s recent developments, particularly the demerger of ITC Hotels. Nimish Maheshwari‘s research discusses the creation of shareholder value through the demerger, with a record date set for January 6, 2025, and a possible listing 60 days after the NCLT order. The analyst also highlights the implications for various indices such as the MSCI Emerging Markets Index, FTSE, NIFTY Index, and S&P BSE SENSEX Index.
In another report, Nimish Maheshwari covers the strategic goals of ITC Hotels post-demerger, aiming to unlock value and achieve significant growth by expanding their hotel portfolio to over 200 hotels by 2030. The analysis anticipates a potential listing price range of 113-170 per share, emphasizing a debt-free strong balance sheet for ITC Hotels. Additionally, Brian Freitas highlights the immediate index implications of the demerger, mentioning a surge in selling from passive index trackers after the demerger date on January 6.
A look at ITC Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
ITC Limited, a diversified company with interests spanning from Cigarettes to FMCG products, has been assessed using Smartkarma Smart Scores. With a high Dividend score of 5 and a strong Resilience score also at 5, ITC Ltd seems to be a reliable company for investors seeking stable returns and consistent payouts. The company’s focus on dividends indicates a commitment to rewarding shareholders over the long term, reflecting positively on its financial health and stability.
Although ITC Ltd scores moderately on Value and Growth factors, with scores of 2 and 3 respectively, its overall outlook remains positive due to the high Dividend and Resilience scores. This suggests that while the company may not be considered undervalued or a high-growth opportunity, its strong dividend performance and resilience in the face of market challenges make it a dependable choice for long-term investment strategies.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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