ITC shares up 5% ahead of Q3 earnings; BSE FMCG up 3%
FMCG shares picked up steam amid choppy trade Thursday ahead of industry major ITC’s October-December quarter earnings declaration.
By INDIATIMES NEWS NETWORK |
MUMBAI: FMCG shares picked up steam amid choppy trade Thursday ahead of industry major ITC’s October-December quarter earnings declaration.
At 2:24 pm, BSE FMCG Index was up nearly 3 per cent with ITC (up 5%) in the lead. Tata Tea (up 2.7%), Hindustan Unilever (2.32%), Godrej Consumer (1.72%) and Britannia Industries (1.03%) also posted smart gains.
“We expect ITC to post 13.2 per cent YoY growth in revenues in Q3FY08 to Rs 35.85 billion. EBITDA margins are expected to decline 59 basis points YoY to 33.6 per cent in Q3FY08, mainly due to the investment mode in new FMCG and agri-businesses. PAT is expected to increase by 11.1 per cent to Rs 7,97.3 crore,” said Motilal Oswal in an earnings preview report.
The company’s growth rates are expected to accelerate from FY09 due to recovery in cigarette businesses and returns from new investments in paper, hotels and new FMCG. The stock is currently trading at 25.1 times FY08 and 21.7 times FY09 earnings estimates and the brokerage maintains a ‘Buy’ rating on the stock.
At 2:24 pm, BSE FMCG Index was up nearly 3 per cent with ITC (up 5%) in the lead. Tata Tea (up 2.7%), Hindustan Unilever (2.32%), Godrej Consumer (1.72%) and Britannia Industries (1.03%) also posted smart gains.
“We expect ITC to post 13.2 per cent YoY growth in revenues in Q3FY08 to Rs 35.85 billion. EBITDA margins are expected to decline 59 basis points YoY to 33.6 per cent in Q3FY08, mainly due to the investment mode in new FMCG and agri-businesses. PAT is expected to increase by 11.1 per cent to Rs 7,97.3 crore,” said Motilal Oswal in an earnings preview report.
The company’s growth rates are expected to accelerate from FY09 due to recovery in cigarette businesses and returns from new investments in paper, hotels and new FMCG. The stock is currently trading at 25.1 times FY08 and 21.7 times FY09 earnings estimates and the brokerage maintains a ‘Buy’ rating on the stock.
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