Shares of ITC traded positive on the stock exchanges ahead of the company’s much awaited fourth quarter financial results. Investor sentiment held up well despite general market concerns about possible margin compression in its core segments. Market analysts believe that, FMCG and hotel businesses can provide consistent support to the top-line revenue growth but, profitability margins may face headwinds due to rising input costs and increased operational expenses.
The key focus areas to watch out for in the upcoming earnings report for investors will be the performance of the flagship cigarette business, volume growth trends in the non-cigarette FMCG segment and the overall impact of raw material inflation. “Updates on the hotel business demerger and dividend announcements will also be key drivers for the stock’s near-term trajectory. The market has priced in some margin caution but a stronger than expected volume recovery could see the conglomerate move further upwards.
