ITC stock slips despite good performance in September quarter

All analysts are bullish on the firm with target prices ranging from Rs 375 to Rs 490

Tobacco major ITC, which also has large exposure in other agro-sectors, as well as in paperboards and hospitality, delivered good results in the July-September quarter for the 2022-23 financial year (Q2FY23).

There was a strong recovery in cigarette volumes, to around 21 per cent year-on-year (YoY), with management saying it has managed to claw back market share from smuggled tobacco. Overall earnings before interest, tax, depreciation and amortisation (ebitda) grew 27 per cent YoY with FMCG, paperboards and agro businesses also doing well. Hotels also climbed to above pre-Covid-19 levels.

The ebitda margin was more or less stable, YoY, at