The shares of the prominent blue-chip company gained up to 3 percent in today’s trading session after analysts saw an attractive valuation, following Q4 Results. With a market capitalization of Rs 5.47 lakh crore, the shares of ITC Ltd were trading at Rs 437.30 apiece, increasing around 2.80 percent as compared to the previous closing price of Rs 426.10 apiece.
Q4 Highlights
The shares of ITC have seen positive movement after reporting positive Q4 results, revenue decreased by 0.13 percent on a quarter-on-quarter basis from Rs 18,790 crore in Q3FY25 to Rs 18,765 crore in Q4FY25. Further, revenue increased by 10 percent year on year, from Rs 17,038 crore in Q4FY24 to Rs 18,765 crore in Q4FY25.
The company’s net profit increased by 295 percent on a quarter-on-quarter basis, from Rs. 5,013 crore in Q3FY25 to Rs.19,808 crore in Q4FY25. Further, net profit magnified significantly by 281 percent year on year from Rs 5,191 crore in Q4FY24 to Rs 19,808 crore in Q4FY25.
Additionally, on January 1, 2025, ITC demerged its Hotels Business into ITC Hotels Ltd (ITCHL), transferring net assets worth Rs 10,466.83 Cr. ITCHL allotted 125.12 Cr shares, making it an associate with ITC holding 39.88%. An exceptional gain of Rs 15,128.81 Cr was recorded after adjustments, with Rs 22,033.37 Cr debited to reserves and Rs 4174.04 Cr added as investment.
For the quarter ended March 31, 2025, ITC reported total segment revenue of Rs 21,780.31 Cr. FMCG led with Rs 14,731.99 Cr, including Rs 9,228.66 Cr from cigarettes and Rs 5,503.33 Cr from other FMCG. Agri Business contributed Rs 3,694.64 Cr, Paperboards Rs 2,188.69 Cr, and Other segments Rs 1,164.99 Cr.
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Brokerage Recommendations
Jefferies, one of the well-known brokerages globally, has maintained its ‘buy’ rating on this FMCG stock with a target price of Rs 535 apiece, indicating a potential upside of 22 percent from Friday’s price of Rs 438.40 per share. Additionally, Goldman Sachs has also maintained a ‘Buy’ rating on ITC, with a price target of Rs 490 apiece.
Jefferies noted ITC’s results were broadly in line, despite significant pressure in its FMCG and paperboard segments. The FMCG segment saw a sharp EBIT decline due to challenging macroeconomic conditions, affecting overall performance but maintaining expected levels.
Goldman Sachs noted steady growth in ITC’s cigarette business despite margin pressure from tobacco cost inflation, expecting a recovery as costs ease. FMCG margins were hit by palm oil inflation but may improve with recent declines. The paperboard segment faces ongoing cost pressures for upcoming quarters.
Written by Abhishek Singh
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