ITC Q4 Results Review - Strong FMCG Performance; Stable Cigarette Growth: Dolat Capital
Results came in line with estimate.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
ITC Ltd.’s Q4 FY23 results came in line with our anticipation. Our analysis suggest that the cigarette business reported ~12% volume growth during Q4 FY23.
Fast moving consumer goods business reported 19.3% revenue growth with 440 basis points improvement in Ebit margin. ITC reported one of the best Ebit performance amongst peers during the quarter.
Continuous improvement in cigarette business is encouraging. The business reported 8.0% sales compound annual growth rate over last four-years and 4.1% volume CAGR over the same period. We expect volume and MS gain in the business in the near term.
We have marginally upward revised our FY24/25E earnings per share estimates at Rs 17.6/19.0 representing 1.5/2.1% revision.
Twin impact of cigarette business market share re-gain from illicit trades and lower duty increase in the budget would help the business to improve margins.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.