These Blue Chip Stocks are part of the S&P BSE SENSEX Index and have market cap of Rs. 5,86,881 crore and Rs. 5,47,598 crore. These companies have announced their results for Q2 FY24 and analysts from J.P Morgan and Citi have updated their estimates for their respective stock prices.
In filings dated 19th October 2023, ITC Ltd (‘ITC”) and Hindustan Unilever Ltd (‘HUL”) announced their results.
ITC:
ITC shares are trading at Rs. 439.25,down 2.5% versus Rs. 450.30 at previous close. ITC is trading 12% away from its 52 week high with a market cap of Rs. 5,47,598 crore. ITC engages in the fast-moving consumer goods, hotels, paperboards and paper and packaging, agri, and information technology businesses in India and internationally.
ITC announced the company’s revenue for Q2 at Rs. 17,705 crore, a 3% YoY increase. The company reported a consolidated net profit of Rs. 4,927 crore during Q2 which is a 10% YoY growth.
ITC’s cigarette and hotel business segments drove the company’s growth during Q2 FY24. Additionally, the company reported strong performance in its FMCG segment in Q2 FY24., with segment revenue increasing by 8.3% YoY.
Nuvama Wealth Management maintained its BUY rating on the ITC stock with a target price of Rs. 560, implying a 24% upside from previous close. Nuvama emphasized that ITC reported respectable growth in the majority of its segments.
Given a small tax increase in the union budget for FY24, followed by two years with no tax increases, it anticipates that legal cigarette players will overtake illegal players on the market, who currently hold nearly one-fourth of the market.
Hindustan Unilever:
HUL shares are trading at Rs. 2499.00, down 1.3% versus Rs. 2547.85 at previous close. HUL is trading 10% away from its 52 week high with a market cap of Rs. 5,86,881 crore. HUL is a fast-moving consumer good company, manufactures and sells food, home care, personal care, and refreshment products in India and internationally.
HUL announced the company’s revenue for Q2 at Rs. 15,027 crore, a 3.5% YoY growth. The company reported a consolidated net profit of Rs. 2,717 crore during Q2 which is 3.9% YoY increase. Further, the company reported EBITDA at Rs. 3,694 crore and a margin expansion of 130 bps from 23.3% previous year.
The share price of the FMCG giant fell on Friday as a result of some brokerage firms’ worries about a gradual volume recovery. Citi, however maintained its BUY rating on the stock of HUL with a target price of Rs 3,000 indicating a 17.8% upside from previous close.
The major investment bank earlier anticipated an immediate effects from increased competition, destocking, and anticipates that HUL will invest in order to maintain market share and remain competitive in this difficult operating environment.
Written by Sandeep R
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