Analysts are optimistic on ITC inventory, trim targets put up Q1FY26 earnings

ITC Share Worth Goal, ITC Q1 Outcomes, ITC Inventory: Diversified conglomerate ITC reported a consolidated internet revenue of Rs 5,343.41 crore for the primary quarter of FY26, which declined from Rs 19,807.88 crore reported in the identical quarter a yr in the past.

In accordance with the corporate, income from operations for Q1FY26 stood at Rs 23,129.35 crore, a 13.5 per cent year-on-year progress from Rs 20,376.36 crore within the corresponding quarter final yr. Whereas complete earnings, together with different earnings, got here at Rs 23,811.56 crore, complete bills had been reported at Rs 16,752.31 crore.

Core cigarettes’ enterprise efficiency

ITC’s complete FMCG phase, together with cigarettes, generated Rs 15,354.30 crore in income through the June quarter.

The cigarette enterprise, a core driver of ITC’s profitability, contributed Rs 9,553.86 crore. Different segments, which incorporates packaged meals, private care, and residential care, posted Rs 5,800.44 crore in income.

What ought to buyers do now?

After this efficiency, analysts at international brokerages have maintained their optimistic outlook on ITC, although some revised or lowered their goal costs. Here’s what CLSA, Nomura, and JPMorgan have prompt:

CLSA maintained an ‘accumulate’ ranking whereas lowering its share worth goal to Rs 489 from Rs 496. Whereas Nomura reiterated its ‘purchase’ name on the FMCG inventory, it minimize the share worth goal to Rs 525 from Rs 544.

Jefferies additionally maintained a ‘purchase’ ranking with a goal worth of Rs 535. It identified that cigarette quantity progress accelerated to over 6 %—a multi-quarter excessive—and outpaced many FMCG friends.

Furthermore, JPMorgan has maintained an ‘chubby’ ranking on the ITC inventory with a goal worth of Rs 475.

Morgan Stanley, too, stayed ‘chubby’ with a goal of Rs 500. It noticed that differentiated and premium choices within the cigarette portfolio are doing properly, although the paper phase confronted headwinds from low international realisations and rising home enter prices.

Macquarie has an ‘outperform’ stance on the FMCG inventory with a goal of Rs 500. In accordance with the brokerage, ITC’s Q1 monetary efficiency is “in-line” and applauded cigarette quantity progress.

Whereas the paper enterprise stays underneath stress, in accordance with Macquarie’s analysts.

HSBC retained its ‘purchase’ stance with a goal of Rs 510. The brokerage famous a income beat of 10 per cent and a minor EBITDA miss (3 per cent), primarily because of weak efficiency within the agribusiness phase.

Citi additionally maintained a ‘purchase’ ranking with a goal of Rs 500. The brokerage flagged ongoing margin pressures within the cigarette phase pushed by costly leaf tobacco.

Inventory ends over 1% larger on August 1

Shares of ITC ended 1.14 per cent larger at Rs 416.50 on the NSE on Friday (August 1), following the outcomes announcement.

(Disclaimer: The views/recommendations/suggestions expressed right here on this article are solely by funding specialists. Zee Enterprise suggests its readers seek the advice of their funding advisers earlier than making any monetary resolution.)