ITC share price target: Should you buy, sell or hold ITC shares? Here's how analysts view Q4 results

ITC share price today NSE, ITC share price target, ITC Q4 results 2024: Shares of FMCG giant ITC hogged the limelight on Friday, May 242, a day after the cigarette-to-hotel conglomerate reported its March quarter results following mixed reactions from global brokerages. ITC shares declined 1.3 per cent to the day's low of Rs 435.3 on NSE. The stock closed at Rs 436.55, down 1.09 per cent on NSE.

ITC Q4 results 2024

ITC posted operationally mixed fourth-quarter results on Thursday (May 23, 2024), as its standalone margin, EBIDTA and profit after tax (PAT) slipped Year-on-Year (YoY) in the quarter under review. There was a slight jump in its revenue from operations YoY.

ITC's standalone revenue from operations went up by 1.1 per cent to Rs 16,579.3 crore in the quarter under review from Rs 16,398.0 crore in the same quarter last fiscal. Read more ITC Q4 results 2024

ITC share price target: Should you buy, sell or hold ITC shares?

CLSA  has downgraded ITC to outperform from buy with a target of Rs 470 per share. "Steady Q4 for cigarettes; paper and agri remain subdued," said the global brokerage in its note. 

The brokerage stated that its profitability in other FMCG segments was impacted by a one-time gain in base qtr with the segment maintaining an upward margin trajectory on a full-year basis. The brokerage has cut near-term earnings by 2-3 per cent. 
 
Morgan Stanley has retained an overweight rating on ITC. The brokerage has reduced the target to Rs 506 apiece from Rs 510 apiece. According to Morgan Stanley,  the revenue was in line but earnings were higher owing to better margins. In its note, the brokerage stated that cigarette revenues were better than our estimate while FMCG was in line. "Margins were better across the FMCG & hotel business but in line for cigarettes and paper," its note said. 
 
Citi has maintained a buy call on ITC. The brokerage has raised the target to Rs 515 from Rs 500. "Q4 below; near-term headwinds to cigarette EBIT, " said the brokerage in its note. "Will monitor any change in taxation or other adverse regulatory pronouncements in union budget post elections - could impact volumes and/or ability to mitigate cost pressures," Citi added. 
 
Jefferies has maintained a hold call on ITC with a Rs 5 per share raise in target to Rs 435 earlier. The brokerage stated that the cigarette business surprised positively, especially on volumes, which grew after the previous qtr of contraction, and this also drove a beat on segmental EBIT. Jefferies sees the upcoming budget as the most important event. 

ITC dividend 2024

ITC also recommended a final dividend of Rs 7.50 per ordinary share of Rs 1/each for the financial year ended 31st March, 2024.

ITC dividend 2024 payment date

The final dividend, if declared, will be paid between Monday, July 29, 2024, and Wednesday, July 31, 2024, to those members entitled thereto, ITC said in a statement on Thursday.

ITC dividend payment date

Together with the interim dividend of Rs 6.25 per ordinary share declared by the Board on January 29, 2024, the total dividend for the financial year ended March 31, 2024 would be Rs 13. 75 per ordinary share of Rs 1/each, said ITC.

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