- 18 May 2023
- ICICI Securities
ITC Q4 Results 2023:Estimate on the revenue operating profit and earnings
ITC Ltd | CMP: 426 | Market Cap: 531,224.88
ITC’s Q4FY23 results were in line with our estimate on the revenue, operating profit & earnings front.
Q4FY23 Earnings Summary
Views: ITC continues to witness strong volume growth in cigarette business largely gaining share from contrabands & illicit cigarettes. We believe stable taxation in cigarettes as well as strong traction in high priced cigarettes have been leading to high volume growth as well as market share gains. Further, FMCG business margins improving by 100-150 bps every year with high growth in foods business. Softening of commodity prices is likely to help in gaining margins in future as well. Hotels business is also growing at a fast pace with significant improvement in mobility in post covid period. We believe ITC would continue to see strong growth in cigarette & FMCG businesses in medium term. The stock is still trading at attractive multiples compared to other FMCG companies. We remain positive on the stock.
Impact: Positive