ITC shares rise after cigarette maker's strong Q3 performance — analysts see up to 20% upside

ITC shares rose on Monday after the cigarettes-to-hotels conglomerate reported a strong set of financial results for the quarter ended December 2022. The ITC stock gained as much as two per cent to Rs 388.2 apiece on BSE.

ITC — whose popular cigarette brands include Gold Flake and Wills Navy Cut — reported a net profit of Rs 5,031 crore for the quarter ended December 2022 post-market hours on Friday, marking an increase of 21 per cent compared with the corresponding period a year ago. Its revenue grew 2.9 per cent on a year-on-year basis to Rs 17,122.2 crore, according to a regulatory filing.

 According to Zee Business research, ITC's quarterly net profit was estimated at Rs 4,699 crore and revenue at Rs 16,652 crore.

Read more on ITC results here

The company's board declared an interim dividend of Rs 6 per share with a record date of February 15. 

According to Morgan Stanley, which maintained a ‘buy’ rating ITC after the cigarette maker's earnings announcement, the company's strong results and positive implications from the recent Budget augur well for the stock. 

ITC shares have risen around eight per cent since February 1, the day Finance Minister Nirmala Sitharaman unveiled the government's Budget for the financial year beginning April 2023.

Also Read: ITC Dividend 2023: Check record date, ex-date and payment date | ITC Share Price NSE Target

What brokerages make of ITC after the company's Q3 results

Most global brokerages are upbeat on ITC shares. 

They see up to 20 per cent upside in the stock from its closing price on Friday.

ITC share price history

ITC shares, which were among the top blue-chip gainers in 2022, have maintained their winning run. The stock has risen more than 66 per cent in the last one year, a period in which the Nifty50 benchmark has risen 2.9 per cent.

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