Credit Suisse has maintained neutral call with a target at Rs 190 per share.
ITC share price added nearly 5 percent in early trade on May 26 after the company said it is going to acquire 100 percent stake in Sunrise Foods.
ITC has entered into a share purchase agreement (SPA) on May 23, 2020 to acquire 100 percent of the equity share capital of Sunrise Foods Private Limited (SFPL), a company primarily engaged in the business of spices under the trademark ‘Sunrise’, subject to fulfilment of various terms and conditions as specified in the SPA, as per company release.
The proposed acquisition will augment the company’s product portfolio and is aligned to ITC’s aspiration to significantly scale up its Spices business and expand its footprint across the country, it added.
Credit Suisse has maintained neutral call with a target at Rs 190 per share.
According to Credit Suisse, the Sunrise acquisition is an excellent fit for ITC's strengths and it is likely to be the largest FMCG purchase done by company.
Sunrise will give company strength in East India in spices, it added.
At 09:25 hrs, ITC was quoting at Rs 193.75, up Rs 7.40, or 3.97 percent on the BSE.
