Stock Market

ITC shares may have turned the corner

ITC shares may have turned the corner

ITC shares gained over 5 percent today, after the company robust earnings Friday.

The company posted net profit of Rs 2,495 crore in January-March quarter, up 5.7 percent from Rs 2,361 crore in corresponding quarter last fiscal.

Its topline exceeded street estimates while margins and net profit were in-line.

During the quarter, the FMCG major’s revenue jumped 9.4 percent at Rs 10,168 crore against Rs 9,293 crore year-on-year.

In Q4, its EBITDA grew 13.6 percent at Rs 3686 crore versus Rs 3244 crore while EBITDA margin was at 36.3 percent versus 34.9 percent (YoY).

Below is an analysis of the key financial indicators of the company and also where brokerages stand on the stock. 

First up, the company’s EBITDA growth over the past four quarters.

Based on trailing 12-month price to earnings multiple, ITC is the cheapest stock in the consumer sector.

A majority of brokerages have maintained their rating on the stock but raised their target prices, citing revival of volumes seen in the cigarettes business.