ITC's Cigarettes Fell 21%. Why the Stock Is Still an ADD.

Описание: ITC's cigarettes fell sharply in Q2, but the rest of the business stepped up.

Here's the full breakdown.
→ Cigarettes: revenue down 21% YoY, EBIT down 27%, broadly in line with estimates
→ Non-cigarette businesses: revenue up 22%, EBIT up 23%
→ Other FMCG: revenue up 19% (ex-atta 23%), EBIT up 31%, margin at 9%
→ ~80% of price hikes already in place
→ Cigarette EBIT/stick expected to rebound by Q4FY27

Rating: ADD | Sep-27 Target: ₹300 (Cigarettes: ₹137/share at 11x P/E | Other FMCG: ₹100/share at 4x sales)

For the full research report, visit: https://www.hdfcsec.com/hsl.docs//ITC...

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