After falling for two straight days, shares of ITC rose as much as 1 percent on Monday ahead of its quarterly earnings, due later today.

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At IST, shares of the cigarettes-to-hotels conglomerate were trading percent higher at Rs on the BSE. The stock is 0.39 percent away from its 52-week high of Rs 305.9 on the BSE.

Here's how the company's stock has performed compared to the sectoral gauge:

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ITC expected to post strong results but FMCG margins may shrink

Here's what to expect from the results:

The Kolkata-based fast-moving consumer goods (FMCG) player's cigarette volume growth will be keenly watched. CNBC-TV18 poll has estimated the volume growth to be 25-28 percent.

According to the poll, the FMCG player's margin may be impacted due to rising input costs, which could result in the operating margin shrinking by 20-30 basis points.

Meanwhile, the hotel business is expected to witness a strong recovery, and any commentary on hotel demerger will be closely watched by the Street.

"We will take it forward in line with industry recovery dynamics. All the indications now are that the industry is on a positive trajectory. So, that is where it stands, it's very much on the table," Chairman Sanjiv Puri had said during the recent annual general meeting and a CNBC-TV18 interview.

ITC earnings may nearly treble in two years, Gautam Duggad, Head of Research-Institutional Equities, at Motilal Oswal Financial Services, said on July 14. The domestic brokerage turned positive on ITC a month ago. Edelweiss Securities' Abnessh Roy, too, has given a 30 percent weightage to ITC in the firm's model portfolio and raised the target to Rs 340-345.

ITC has 12 businesses spanning FMCG, agri, paperboard & packaging, ITC hotels and ITC Infotech.

ITC has more than 25 brands in foods, personal care, products, education and stationery products, agarbattis and matches, including Aashirvaad, Yipee!, Bingo!, Savlon+, Sunfeast, Classmate, Magaldeep, Fiama, B Natural, Nimyle among others.

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First Published:Aug 1, 2022 10:00 AM IST