According to reports from Investing.com India, ITC delivered disappointing quarterly results that fell significantly short of market expectations. The company reported revenue of ₹16,907 crore, which missed street estimates of ₹18,630 crore by approximately 9.2%. More concerning was the 14.5% year-on-year revenue decline, while net profit dropped by 27.1% during the quarter. The company's EBITDA margins contracted sharply by 27.9%, adding another warning sign for investors.
As reported by Investing.com India, ITC has been caught in what analysts describe as a perfect storm of challenges. Higher taxation on cigarettes has squeezed margins, and the company appears to be absorbing a meaningful part of the burden rather than passing it entirely to consumers. Additionally, the FMCG and paper businesses are battling rising raw material costs, while supply chain disruptions stemming from the West Asia crisis and elevated ocean freight rates have only made matters worse for the diversified conglomerate.
According to the analysis from Investing.com India, ITC remains trapped inside a box range between ₹274 and ₹292. The report suggests that as long as the stock stays within this zone, it should be treated as an intraday trading stock rather than a positional opportunity. However, a decisive move below ₹274 could open the door to downside targets of ₹267, followed by ₹258. Conversely, if ITC manages to rise above ₹292, it could head towards ₹305, though this is considered highly unlikely given the current bearish trend.
As reported by Investing.com India, the analysis recommends a cautious approach to ITC trading. Between Friday's low and ₹274, the stock should be treated strictly as an intraday trade. If ₹274 gives way, the preference would be to short the stock positionally through futures and call option selling rather than buying puts. The rationale is that this approach allows option sellers to benefit from premium erosion while the trend progresses, compared to option buyers who must battle time decay. The report emphasizes that patience is the better strategy than optimism, suggesting investors should wait for clearer confirmation of the bearish trend before taking strong bearish positions.
