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Centrum Broking has buy call on with a target price of Rs 353. The current market price of ITC is Rs 218.1.
ITC Ltd., incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 269297.43 Crore) operating in Tobacco sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 14670.17 Crore, up 6.85 % from last quarter Total Income of Rs 13730.06 Crore and up 5.08 % from last year same quarter Total Income of Rs 13960.50 Crore. Company reported net profit after tax of Rs 3587.20 Crore in latest quarter.
Investment Rationale
The brokerage believes, renewed focus on driving cigarette business with volumes, tailwinds for FMCG foods business (ITC launched ~100 new products), high dividend yield and reasonable valuations make it more attractive for investors. It maintains estimates and reiterate Buy rating with DCF-based Target price Rs.353, implying 23.6x FY23E EPS. Key risks are sharp increase in any form of taxation, higher leaf tobacco prices and reinitiated lockdowns.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of Dec 30, 2020, while FIIs held 13.3 per cent, DIIs 38.9 per cent and public and others 47.8 per cent.
ITC Ltd., incorporated in the year 1910, is a Large Cap company (having a market cap of Rs 269297.43 Crore) operating in Tobacco sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 14670.17 Crore, up 6.85 % from last quarter Total Income of Rs 13730.06 Crore and up 5.08 % from last year same quarter Total Income of Rs 13960.50 Crore. Company reported net profit after tax of Rs 3587.20 Crore in latest quarter.
Investment Rationale
The brokerage believes, renewed focus on driving cigarette business with volumes, tailwinds for FMCG foods business (ITC launched ~100 new products), high dividend yield and reasonable valuations make it more attractive for investors. It maintains estimates and reiterate Buy rating with DCF-based Target price Rs.353, implying 23.6x FY23E EPS. Key risks are sharp increase in any form of taxation, higher leaf tobacco prices and reinitiated lockdowns.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of Dec 30, 2020, while FIIs held 13.3 per cent, DIIs 38.9 per cent and public and others 47.8 per cent.
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