Snapping its two-day gaining streak, the shares of ITC declined by around three per cent to Rs 209.35 apiece on the BSE intraday today amid in-line fourth-quarter results in FY21. In this regard, brokerages being bullish maintained Buy stance, however, remain cautious on the cigarettes business. 

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ITC’s consolidated revenues jumped by 24 per cent year-on-year (YoY) to Rs 14,157 crore, led by a 15.8 per cent growth in the fast-moving consumer goods (FMCG) business, 14.2 per cent growth in the cigarettes business, and 13.5 per cent growth in the paperboard business. 

Goldman Sachs lowers between FY22-24 EPS estimates by four to seven per cent post Q4 result. The company’s valuation does not fully reflect a combination of yield and growth potential, says the brokerage firm expecting the stock to grow by Rs 242 per share. 

Similarly, CLSA also maintained a Buy rating on ITC, however, cut earnings estimates for its cigarette business by 3 per cent. It expects the stock to grow by Rs 265 per share and remain confident in the improving margin trajectory for other FMCG businesses. 

While UBS also recommending to Buy shares of ITC for a price target of Rs 26 per share, said FMCG ramp-up continues and sunrise foods integrated. The brokerage firm expects cigarette volume to recover to pre-covid level in Q4. 

Meanwhile, Morgan Stanley MS maintained an Overweight rating on ITC with Q4 earnings in-line with its expectation and consensus. The brokerage firm expects the stock to grow by Rs 251 per share. 

The stock in the last three days declined by over three and a half per cent from Rs 216.6 to Rs 209.8 per share on the BSE intraday today. At around 14:15 pm, the shares of ITC are trading at day’s low.