ITC’s Q2 results were largely in line with Street expectations, marked by muted revenue growth but an outperformance on EBITDA and net profit. The Cigarettes and FMCG segments supported overall growth, partly offset by weakness in the Agri business.

Nirmal Bang said Cigarette volumes, estimated at 6 per cent, continued to be healthy while the other FMCG business surprised positively both on sales growth and margins, which can sustain further. Advertisement

"With minimum import price being imposed on paperboard, the domestic industry has obtained a breather, and margins in this segment are likely to be better going forward," it said. The brokerage suggested a 'Buy' rating and a target of Rs 495 on the stock.

MOFSL said ITC’s core business growth has been steady, with healthy cigarette

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