ITC, Godfrey Phillips, VST: What analysts expect from cigarette stocks in Q2 after new tax regime | Best stock to buy?
ITC moved higher in a quarterly results development for Q2 FY27.
· LiveMint Markets
According to analysts, with companies now having more time to implement price increases and pass on higher taxes to consumers, some sequential improvement in margins in Q2 FY27 is expected.
Key facts
- Period
- Q2 FY27
The analysis
Against that, the stock is -3.8% on the day at ₹255.50, and has returned -9.4% over three months. It sits 39% below its 52-week high, which means a good deal of bad news was already in the price. The fmcg sector has moved -4.2% over the same period, so ITC is running 5.2 points behind its peers.
For ITC, the question is how much of this is already reflected in the price and how much re-rates the fmcg peer set alongside it.
Why it matters
- Earnings versus expectations is what actually re-rates a stock; the surprise matters more than the absolute number.
Market context
- The company directly in focus is ITC.
- Sector exposure: FMCG.
In this story
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