ITC shares rise 2 per cent after second quarter results
The FMCG major saw its stock gain on the NSE despite an 18.5 per cent drop in consolidated net profit.
Shares of ITC rose 2 per cent to Rs 271 on the NSE on Tuesday, according to The Economic Times. The stock gain occurred even as the company reported an 18.5 per cent decline in consolidated net profit for the September quarter.
The company's net profit for the second quarter of FY27 was Rs 4,229 crore, down from Rs 5,187 crore during the same period last year. However, net revenue grew 5 per cent to reach Rs 20,454 crore, compared to Rs 19,455 crore a year earlier.
The cigarette segment was the primary cause for the profit drop, with segment profit falling 27.2 per cent to Rs 3,813 crore from Rs 5,241 crore last year. Conversely, the non-cigarette FMCG business saw its strongest revenue growth in 14 quarters, supported by sales in packaged foods, personal care, and stationery.
Jefferies maintained a Buy rating with a target price of Rs 350, noting that while geopolitical tensions and input costs create uncertainty, Indian demand remains resilient. Nuvama upgraded ITC to Buy from Hold with a Rs 310 target, stating the performance was slightly ahead of estimates despite cigarette business pressure.
Emkay retained an Add rating but lowered its target price to Rs 300, noting that revenue was 2 per cent above estimates while EBITDA and profit fell due to excise duty increases. DAM Capital maintained a Buy rating with a target of Rs 355, noting that EBITDA was ahead of estimates despite being lower year-on-year.