GQG Partners, Adani group investor, upped stake in ITC to 2.79% in Q3

GQG Partners, which has been an investor in many Adani group firms, upped stake in ITC in the December quarter, latest shareholding data available with stock exchanges suggested. As per the data, two funds associated with Rajiv Jain's GQG Partners namely GQG Partners Emerging Markets Equity Fund and Goldman Sachs Trust II - Goldman Sachs GQG Partners International Opportunities Fund together held 2.79 per cent stake in cigarette maker ITC as of December quarter. This is against 1.58 per cent stake GQG Partners held in the FMCG firm at the end of September quarter.

ITC shares closed at Rs 474.35 on Tuesday, up 1.49 per cent. At the prevailing price, the GQG stake in ITC was valued at Rs 16,510.67 crore.

GQG Partners Emerging Markets Equity Fund held 21,68,71,392 shares or 1.74 per cent stake in ITC at the end of December quarter. Goldman Sachs Trust II - Goldman Sachs GQG Partners International Opportunities Fund, on the other hand, managed 13,10,34,721 shares or 1.05erper cent stake in the FMCG firm.

In the September quarter, GQG Partners Emerging Markets Equity Fund held 19,67,66,443 ITC shares or 1.58 per cent stake. ITC shares were up 4 per cent in the October-December quarter and 2 per cent in 2024 so far.

GQG Partners manages global and emerging market equities for institutions, advisors, and individuals worldwide. As per GQG's web portal, the firm manages over $100 billion in client assets in global, emerging markets, international, and US strategies.

ITC Q3 results preview

For the December quarter, ITC is expected to report a single-digit growth in profit on a similar growth in sales. PhillipCapital in a preview note said cigarette volume growth may moderate, as consumers cut down on discretionary spends. This brokerage expects the FMCG business growth to moderate as pricing anniversaries. Paper to see significant correction in overall pricing, it said adding that Ebitda margin may see decent swing, owing to improved sales mix, benefits of integrated manufacturing facilities.

"We expect ITC’s overall topline to be up by 7.7 per cent YoY even while we expect YoY volume growth in cigarette business to taper down slightly to 3 per cent (but maintaining CAGR). Other-FMCG business is expected to grow at 12 per cent YoY. Ban on exports for the Agri business will come into the base so the drag on topline will be restricted to the PPP business which is expected to be down by 3 per cent YoY. At the company level, we expect Ebitda margin to expand 10 bps YoY to 38.5 per cent," YES Securities said in a note.

This brokerage expects Ebitda and adjusted profit after tax to grow 8.1 per cent YoY and 7.2 per cent YoY, respectively.

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