BROKERAGES DOWNGRADE ITC
Market resumes Diwali cheers: Sensex rises 107 points, Nifty ends near 25,050. Why Citi, HSBC are turning bullish?
Sensex and Nifty ended positively after recovering from early losses during the Muhurat Trading session. Nifty PSU Bank index rose significantly, while IT stocks declined, affecting overall market sentiment. Analysts from Citi and HSBC are optimistic about the future of Indian equities amid improving fundamentals. Investors are currently awaiting inflation data to gauge interest-rate trajectories and monitor crude oil prices.
Q2 earnings upgrades hold above 50%, says Jefferies. Is the profit cycle turning?
India’s Q2 FY27 earnings show signs of resilience, with Jefferies reporting that 50% of the 105 companies it tracks received FY27 earnings estimate upgrades, while 41% saw downgrades and 9% remained unchanged. The share of companies beating expectations rose to 56% from 52% in the previous quarter, though the recovery remains uneven across sectors.
Buy, Sell or Hold: Citi maintains buy on Endurance Technologies; HDFC Securities downgrades Data Patterns
Brokerages offer mixed outlooks on midcap stocks, with Citi maintaining a 'Buy' on Endurance Technologies due to strong Q4 results and HDFC Securities downgrading Data Patterns to 'Add' citing rich valuations. Elara Capital reiterates 'Buy' on ITC Hotels, impressed by expansion despite geopolitical concerns.
ITC shares in focus as stock hits 3-year low, brokerages downgrade after steep excise duty hike on cigarettes
ITC shares slid to a three-year low after a sharp tobacco tax hike triggered widespread brokerage downgrades. Analysts warn that higher excise and GST rates could force steep price increases, hurt cigarette volumes, and compress margins, prompting target cuts and cautious outlooks despite ITC’s diversified FMCG presence.
ITC slides to three-year low as tobacco excise hike prompts brokerage downgrades
ITC shares plummeted to a three-year low following a government excise duty hike on tobacco products. Brokerages downgraded the stock, citing fears of dampened cigarette demand and significant impact on profitability. Investors are advised to wait for clarity on price hikes and volume trends before considering buying.
LIC's losses mount to Rs 10,445 crore in ITC in 2 days as stock plummets 13% after tax hike
LIC has incurred losses of over Rs 10,400 crore in just two days as ITC shares plunged 14% following a steep excise duty hike on cigarettes. The tax increase triggered heavy selling and multiple broker downgrades, with analysts warning that significant price hikes may be required to offset the higher duty burden.
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ITC shares plunge to 3-year low after tax bombshell: Is this a falling knife or hidden value?
ITC shares slid to a three-year low after a sharp two-day, 14% fall triggered by a steep cigarette tax hike, prompting multiple brokerage downgrades amid concerns that large price increases will be needed to offset the impact, risking volumes and earnings.
ITC hit by 6 brokerage downgrades as cigarette tax hike darkens earnings outlook. Should you buy, sell or hold?
Brokerages have turned sharply cautious on ITC after the government’s steep hike in cigarette excise duties, triggering downgrades, earnings cuts and valuation resets. While domestic brokerages warn of volume pressure and a revival of illicit trade, Jefferies has retained a Buy rating, arguing that long-term returns and cash payouts could cushion near-term pain.
Buy, Sell or Hold: Motilal Oswal downgrades ITC; Citi maintains neutral rating on HCL Technologies
Brokerage views on key frontline stocks reflect divergent trends. Citi maintained a Neutral stance on HCL Technologies while raising its target price due to improving sector prospects. Motilal Oswal downgraded ITC after a sharp cigarette tax hike raised earnings concerns. Emkay remained bullish on Devyani International, citing merger synergies with Sapphire Foods and long-term growth potential.
Tax shocker makes Nuvama downgrade ITC shares, says cigarette prices can go up 20%
Nuvama cut ITC’s target price to Rs 415 and downgraded the stock to hold after the government announced a sharper-than-expected hike in cigarette taxes. The brokerage expects price hikes to hurt volumes and EBITDA from FY27, prompting earnings downgrades. However, strong cash flows, a high dividend payout and growth in non-tobacco businesses offer downside support.
Indian consumer stocks are ready for a rebound: UBS
The brokerage raised its ratings on Hindustan Unilever, ITC, Trent and Colgate to 'buy', while maintaining its 'buy' on Avenue Supermarts (DMart), Godrej Consumer Products and Britannia. UBS' top picks could return between 5% and 22% in the next twelve months
After a 5% rally in 2 days, ITC earns a downgrade. Here's why
Emkay Global downgraded ITC to 'add' at Rs 460 citing near-term pressures like margin stress. Analysts' recommendations from Trendlyne data show 31 buy, 2 hold, and 1 sell. ITC shares yielded negative returns recently.
ITC share price targets go well beyond Rs 500 after Q4 results. Should you buy, sell or hold?
ITC's Q4 results disappoint investors, shares drop nearly 1% to Rs 437.85. Brokerages raise target prices up to Rs 540. Citi sets target at Rs 515, warns of regulatory impact. Morgan Stanley targets Rs 506, CLSA at Rs 470. Motilal Oswal sees defensive potential, Kotak trims EPS, targets Rs 465. JM Financial holds highest target of Rs 540, emphasizes on cigarette volume growth and capital allocation strategy for rerating.
Hot Stocks: Brokerage view on CG Consumer, Indiabulls Housing, PVR Inox and ITC
The downgrade was largely on account of the 1Q margins miss. Going forward, investments are likely to drive growth that will likely keep margins low. Valuations are in a fair value zone.
Hot Stocks: Brokerages on DLF, Tata Steel, PNB Housing and ITC
CLSA downgraded DLF to outperform with a target of Rs 547. The housing demand momentum continues, which is positive for the stock.
Hot Stocks: Brokerage views on Mphasis, Ashok Leyland, ITC and Piramal Pharma
Macquarie has downgraded Mphasis to underperform and lowered its target price, while maintaining an outperform rating on Mastek. Bofa Securities has a buy rating on Ashok Leyland, citing the company's good strategy and predicted margin improvement. Nomura retained its buy rating on ITC, citing gradual improvement in rural demand and strong volume growth in the cigarette business. Jefferies also kept its buy rating on Piramal Pharma, noting the company's strong order book and potential for surprises in complex hospital generics.
Multiple headwinds likely to weigh on consumer stocks
Jefferies has cut FMCG giant Hindustan Unilever's earnings estimates for 2022-23 by 9% and by 3% for 2023-24. With soaps and detergents - the most impacted categories in the current inflation surge - accounting for around 40% of HUL's overall revenues, near-term margin headwinds are likely, said the brokerage.
Street positive on ITC’s FMCG business outlook
CLSA said the inflationary setting is likely to influence its near-term margin but it is confident of the improving margin trajectory for the other FMCG business on the back of an improving sales mix, falling incubation costs and operating leverage benefits.
Brokerages downgrade ITC post Budget disappointment
ITC’s cigarette business, which accounts for three of every four cigarettes sold legally, reported 4.7 per cent growth in revenue in the December quarter at Rs 5,310.98 crore. The company’s net profit for the period was up by 29 per cent at Rs 4,141.93 crore beating Street estimates. Brokerages Phillip Capital and Edelweiss have downgraded the stock following the Budget development.
ITC may need 10-15% cigarette price hike
Company’s net profit for the period was up by 29 per cent at Rs 4,141.93 crore beating Street estimates.
Edelweiss downgrades ITC to 'hold'
The brokerage added that prices hikes may lead to better GST collections, but its impact on volumes needs to be seen.
Brokerages downgrade ITC, cut target price by up to 32%
ITC would need to hike cigarette prices to grow earnings, which may impact volumes.
ITC chokes on its own smoke! Set for steepest fall since 1992
The brokerage has maintained hold rating on ITC with a target price of Rs 320.
CLSA raises IT to overweight in model portfolio
CLSA has reduced weightage to Hindustan Unilever, ITC and Maruti in the portfolio. The brokerage has also removed ITC and Maruti from its high-conviction list.
Add ITC, target Rs 265 : ICICI Securities
The brokerage expects one of the three scenarios on GST tax incidence to emerge status quo, high demerit rate or tax neutral rate with lower excise duty.
Top 5 stock picks by global brokerages that can make you money in 12 months
Global brokerages such as Goldman Sachs and CLSA last week downgraded Godrej Consumer Products, Yes Bank and Maruti Suzuki in notes to their clients.
RIL pips ITC to become second most-valued firm on BSE
A selling spree in ITC following custom duty on cigarettes made Reliance Industries the second most-valued company on BSE in terms of market capitalisation.
HUL rallies over 4% post Q2 results; ITC, Colgate Palmolive slip
Morgan Stanley downgraded ITC from ‘overweight’ to ‘equalweight’ and has also slashed its target price from Rs 425.00 earlier to Rs 360.00.
Brokerage views on ITC, HDFC, JSW Energy, Axis Bank, Yes Bank, TCS
Read on to know what brokerages have to say about select stocks that are likely to be in action today.
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