ITC Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for ITC, BSE:500875 ITC Ltd.

ITC Ltd.

29 Oct 2019

416.25

0.06%

Result Update:ITC - Q2FY20

Buy: ITC Ltd.

Axis Direct

ITC reported in-line growth for Q2 with 6%/7% revenue/EBIT growth in its corecigarette segment led by 3% cigarette volume growth (3% vs 3-4% estimates). It reported ~15% growth in Non-Cigarette EBIT led by better sustained improvement in FMCG profitability

Number of FII/FPI investors decreased from 1675 to 974 in Mar 2025 qtr

ITC Ltd.

25 Oct 2019

416.25

0.06%

ITC (2QFY20): Re-rating on the cards. Maintain BUY

Buy: ITC Ltd.

Target

HDFC Securities

Stable taxes in FY19 accelerated cig volume growth to 5.5% vs. -5% CAGR during FY15-18. EBIT growth also accelerated to 9% vs. 7% CAGR during FY15-18. Still ITC did not enjoy a re-rating as investors flocked towards ITC's peers (HUL, Dabur and Britannia etc.). Rather cig business saw a de-rating (>20% fall, based on assigning fair valuation to other segments) over the last 12-months. We expect cig valuation will recover owing to (1) Continuation of stable taxes, (2) EBIT margin expansion and (3) Pickup in rural market. We believe cig valuation will recover to its avg. of 18x EV/EBITDA (still lower than 25x for Colgate which is similar wrt market leadership, vol growth trajectory and pricing power). Other catalyst in the business is FMCG, with scope for margin expansion. We continue to believe that valuation discount will narrow. ITC clocked in-line performance, with no deceleration vs. 1Q (most consumer cos were impacted by slowdown and floods). Cig rev/vol/EBIT growth of 6/3/7.4% was steady. FMCG and Hotels outperformed with rev/EBITDA growth of 6.5/39% and 18/37%. ITCs earnings growth (ex-corp tax benefits) of 10% has been steady over the last 8 quarters, still stock has been de-rated. We believe de-rating is unwarranted when the co is consistently showing quality earnings. We value ITC on SoTP basis and arrive at a TP of Rs 368 (implied P/E of 25x). Maintain BUY.

ITC Ltd. has an average target of 517.25 from 8 brokers.

ITC Ltd.

25 Oct 2019

416.25

0.06%

ITC Limited

Buy: ITC Ltd.

Target

ICICI Securities Limited

Cigarette, FMCG growth weakens; margins continue to impress Cigarette sales grew 6% YoY with an estimated 3% YoY increase in volumes and 3% increase in realisations led by select price hike and mix improvement. We believe cigarette volume growth was a tad slower due to slower growth in ITC's sub 64 mm portfolio. Weak rural demand and floods in certain geographies have also impacted demand in this segment. Cigarette EBIT increased 7.4% YoY with 96 bps expansion in margins on account of relatively lower growth in sub 64mm portfolio and salience of...

Number of MF schemes decreased from 432 to 51 in Mar 2025 qtr

ITC Ltd.

24 Oct 2019

416.25

0.06%

ITC

Hold: ITC Ltd.

Recommendation Target

Sharekhan

ITC posted steady numbers in Q2FY2020 with revenue growing by 5.3% and operating profit growing by 8.5% (OPM increased 112 bps to 38.4%). Higher other income led to a 10% y-o-y growth in profit before tax. A lower tax incidence drove up profit after tax (PAT) by 36%. Core cigarette business volumes grew by 3% largely driven by higher growth in premium cigarettes while regular and small-size cigarettes registered muted performance due to higher salience of sales in rural markets. The non-cigarette FMCG business continues...

Number of FII/FPI investors decreased from 1675 to 974 in Mar 2025 qtr

ITC Ltd.

30 Aug 2019

416.25

0.06%

ITC LIMITED

Hold: ITC Ltd.

Recommendation Target

Geojit BNP Paribas

Q1FY20 revenue rose 6.0% YoY on strong growth in Agri business (+14.6% YoY) followed by FMCG (+6.2% YoY). Group EBIT grew 7.8% YoY with EBIT margin increasing 62bps YoY to...

ITC Ltd. is trading below all available SMAs

ITC Ltd.

09 Aug 2019

416.25

0.06%

Result Update:ITC

Buy: ITC Ltd.

Target

Axis Direct

ITC reported lower than expected revenue growth for Q1 dragged by disappointing cigarette volume growth (3% vs 5-6% estimates). It reported ~8% EBIT growth in its core cigarette business led by better product mix.

ITC Ltd. is trading below all available SMAs

ITC Ltd.

06 Aug 2019

416.25

0.06%

ITC

Results Update: ITC Ltd.

SMC online

ITC Ltd.s profit in the June quarter met estimates as its operating margin rose. For the quarter ended June 2019, sales grew 7% to Rs 12657.90 crore. OPM rose 80 basis points to 39.0% which took OP up 9% to Rs 4937.75 crore. Other income jumped 53% to Rs 647.29 crore and interest cost grew 85% to Rs 14.58 core. As depreciation grew 18% to Rs 378.94 crore, PBT grew 12% to Rs 5191.52 crore. Tax grew 10% to Rs 1755.01 crore after which PAT went up 13% to Rs 3436.51 crore. Minority...

ITC Ltd. has an average target of 517.25 from 8 brokers.

ITC Ltd.

05 Aug 2019

416.25

0.06%

ITC

Buy: ITC Ltd.

Target

Sharekhan

ITC posted a mixed set of numbers in Q1FY2020 with revenue growing by just 6%, while better operating margins (OPM) and higher other income helped PAT grow by ~12%. Sales volumes of the core cigarette business grew by just 3%, missing ours as well as the street's expectation of 5-6%. Non-cigarette FMCG business grew by 8% (excluding discontinued retail business), while it's EBIDTA grew by 41%. Other businesses did well by clocking double-digit revenue growth. Discounted valuations of 21.5x its FY2021E earnings make...

ITC Ltd. has an average target of 517.25 from 8 brokers.

ITC Ltd.

05 Aug 2019

416.25

0.06%

ITC (1QFY20): A puzzle for value hunters Maintain BUY

Buy: ITC Ltd.

Target

HDFC Securities

Stable taxes in FY19 accelerated cig volume/EBIT growth to 5.5/9% vs. -5/7% CAGR during FY15-18. Even then ITC did not enjoy a re-rating as investors flocked towards peers like HUL, Dabur and Britannia etc. Rather, cig business saw a de-rating (20-25%, based on assigning fair valuation to other segments) over the last 12-months. We believe the quantum of de-rating is unfair and expect implied cig valuation will recover to its 5 year average EV/EBITDA of 18x (20% discount to Colgate's 1 year forward EV/EBITDA of 22x; similar market leadership, vol growth and pricing power). Mean reversion in cig valuation will be led by (1) Stable taxes, (2) EBIT margin expansion and (3) Pickup in rural consumption. FMCG margin expansion is the other catalyst for a re-rating. We believe that unfair valuation discount will narrow. ITCs 1Q performance was soft vs. its FY19 show but in-line with FMCG peers. We expect 1Q growth trajectory to replicate over FY20, led by higher base of cig. volume growth and consumption slowdown. We value ITC on SoTP basis and arrive at a TP of Rs 362 (implied P/E of 28x vs. earlier assigned P/E of 32x). We de-rate cigarette business by 10% (EV/EBITDA 18x vs. 20x implied earlier) owing to slower than expected volume growth in the era of stable taxes. Maintain BUY.

ITC Ltd. is trading below all available SMAs

ITC Ltd.

05 Aug 2019

416.25

0.06%

ITC Limited

Buy: ITC Ltd.

Target

ICICI Securities Limited

After two quarters of cigarette margin decline, ITC's cigarette margins expanded 145 bps to 70.8% in Q1FY20 on the back of stable taxation regime and selective price hikes during the year. We believe the company's efforts to localise capsule filters (capsule filters are largely imported) and price hikes in the range of 14-16% in select portfolio (some Gold Flake varieties: 2.5% volume of cigarette portfolio) yielded results for this segment's margin expansion. FMCG EBIT improved from | 50.1 crore to | 78 crore (EBITDA increased from | 127.8 crore to | 180.7 crore) led by strong growth in...

Number of MF schemes decreased from 432 to 51 in Mar 2025 qtr

Is ITC Ltd. worth buying?

6133 Votes:

Buy 76.83%

Sell 12.05%

Hold 11.12%

RESEARCH REPORTS

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