ITC's Q2 FY25 performance was strong, surpassing expectations in terms of top-line growth despite challenges such as margin headwinds and a decline in consumption in the FMCG sector.

The company's market capitalisation is ₹5,90,171.04 crore, with a current market price of ₹472. The agri and hotel sectors performed well, while the paperboard segment remained resilient in difficult operating conditions.

ITC is considered a defensive play with a good dividend yield and is rated overweight due to its strong fundamentals. The medium-term outlook is positive, with potential benefits from the China plus strategy and protectionist measures in the tyre industry. Although valuations are not cheap, the anticipated spin-off of the hotels segment is expected to improve return ratios.