FMCG companies reported muted performance in Q3FY24 due to sluggish rural demand and increased competitive intensity, affecting overall volume growth. Amid this environment, let s analyse between ITC and Hindustan Unilever (HUL), which stock has better long-term investment opportunities.
"While ITC trades at reasonable valuations (26x FY25e EPS), we expect the stock to remain range-bound, given near-term volume moderation (c.2% decline in 3Q), tax uncertainty until the final Budget and overhang from potential BAT stake sale," Maheshwari said.
ITC Ltd on Monday reported 10.8% year-on-year growth in net profit at Rs 5,572 crore for the third quarter ending December 23, while gross revenue went up by 2.1% to Rs 17,483 crore. Both revenue and profit exceeded street estimates.