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ITC continued to deliver a healthy performance in core segments despite a challenging consumption environment. Though margins remained under pressure YoY, sequential improvement was seen..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.ITC Ltd.’s core business of cigarettes saw steady performance. With stable taxes on cigarettes, we anticipate stable growth in this business. We model a 6% revenue CAGR in FY25-28E.We expect supportive macroeconomic factors to act as a catalyst for boosting consumption sentiment. In line with that, we expect FMCG performance to improve in the coming quarters. We model 9% revenue CAGR during FY25-28E.If ITC sustains mid-single-digit volume growth in the cigarette business and the FMCG business sees a recovery in H2 FY26, we expect a valuation re-rating. We reiterate our Buy rating on ITC with our SoTP-based target price of Rs 515 (implying 27x Sep’27E P/E)..Click on the attachment to read the full report:.ITC Vs Dabur: Which FMCG Stock Should You Bet On After Q2 Results? Here's A Five-Point Analysis.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
