To get a better context on why ITC demands a premium, let us compare the growth in Cigarettes and FMCG divisions
FMCG Revenue growth % in FY 23 March quarter
| Company | YoY | QoQ |
|---|---|---|
| ITC | 19 | 2.2 |
| HUL | 10.5 | -2.5 |
| Brittania | 13 | -4 |
| Marico | 3.7 | -9 |
| Godrej Consumer | 9.8 | -9 |
| P&G | -10 | -22 |
| Nestle | 21 | 13 |
| Dabur | 6.4 | -12 |
As one can see even when it comes to quarter on quarter comparison, only ITC and Nestle showed revenue growth while other FMCG giants sales declined. Hope the trend continues.
Cigarette Revenue growth % in FY 23 March quarter
| Company | YoY | QoQ |
|---|---|---|
| ITC | 13 | -0.05 |
| Godfrey | 14 | -12.6 |
| VST | -0.3 | -12.7 |
NTC and Golden Tobacco are below 100 Cr cap companies… Although Jaipur red, Maypole cigarette maker NTC did pretty well last year. But scale at which other tobacco makers operate makes it incomparable.
Just to put things in perspective.
Note: Same holding as last post but no transactions last 30 days. Please do your own due diligence.
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