Brokerages are optimistic about ITC stock after the company's strong Q2 earnings report for the quarter ending September 2024. Despite challenges such as subdued demand, heavy rainfall in certain areas, high food inflation, and rising input costs, ITC showed resilience with strong performance in key segments, particularly in cigarette volumes and its hotel business.

In Q2 FY25, ITC reported a standalone net profit of Rs 5,078.3 crore, a 3.1% increase year-on-year. Total revenue for the quarter grew by 16.8% year-on-year, reaching Rs 19,327.8 crore. Nomura has recommended buying ITC stock with a target price of Rs 555 per share. They noted that while sales performance was strong, margins faced pressure across various segments.

Despite the challenges faced, ITC's strong performance in key segments, such as cigarette volumes and its hotel business, has garnered optimism from brokerages. With a standalone net profit increase of 3.1% year-on-year and a total revenue growth of 16.8% year-on-year, ITC has shown resilience in the face of adverse conditions. Nomura has recommended buying ITC stock with a target price of Rs 555 per share, highlighting the strong sales performance while acknowledging the pressure on margins across various segments.