217.85 3.70 (1.73%)
NSEJan 15, 2021 03:31 PM
The 39 reports from 11 analysts offering long term price targets for ITC Ltd. have an average target of 227.00. The consensus estimate represents an upside of 4.20% from the last price of 217.85.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2021-01-12||ITC Ltd. +||HDFC Securities||211.25||211.25 (3.12%)||Buy|
Our view: We believe companies with higher revenue mix from rural will continue to benefit. Ecomm will continue to gain pace as consumers remain wary about venturing into crowded MT stores. Hence, companies with a strong presence and diversified offerings in e-comm will do well. We expect recovery in categories like Liquor and QSR to continue to be strong, driven by easing of restrictions and strengthening demand for home delivery. FMCG sector has underperformed Nifty by ~20% in the past six months, and we see a balanced risk-reward for the FMCG sector for FY22/FY23 with earnings led stock returns. Aggregate revenue/EBITDA to grow by 8/7%: Our FMCG coverage universe is expected to deliver growth of 8/7% YoY in revenue/ EBITDA (ex-GSK, 6/6%) in 3QFY21 (vs. 5/8% in 3QFY20 and 7/5% in 2QFY21). Recovery in demand continued across segments as easing of restrictions lifted sentiments. Discretionary categories like personal care, OOH, liquor, and tobacco, which were laggards in 1HFY21, saw healthy recovery. However, growth for categories like packaged foods, essentials and hygiene segments witnessed moderation, while growth in healthcare continued to remain healthy. Despite the reduced growth divergence within categories, the divergence between urban and rural recovery continued to remain significant. Rural demand was the key driver of growth across channels and categories. However, we expect the divergence in demand to continue normalising and urban to bounce back, going forward. Categories like hair care and discretionary personal care saw a recovery, which was driven primarily by the value segment. While MT improved QoQ, growth momentum sustained for...
|2020-11-11||ITC Ltd. +||Sharekhan||185.30||250.00||185.30 (17.57%)||14.76||Buy|
ITC's Q2FY2021 performance was affected by localised lockdowns in July-August resulting in a 12% decline in volume of core-cigarette business (net sales was down by ~14%). Cigarette sales started recovering from September but yet to reach preCOVID levels. Non-cigarette FMCG performed strongly, rising by 18.4% led by staples, operating profit grew 66% y-o-y to Rs. 366 crore (margins rose 300 bps to 9.7%). As non-cigarette FMCG business scales up, its OPM is expected to improve further...
|2020-11-11||ITC Ltd. +||Geojit BNP Paribas||187.10||217.00||187.10 (16.44%)||Target met||Buy|
Geojit BNP Paribas
Q2FY21 standalone revenue jumped 26.0% QoQ (+1.2% YoY) aided by growth in FMCG, Hotels and Paper businesses as economy opened up. EBITDA margin improved sequentially to 34.1% from 28.0% in Q1FY20, owing to comparatively lower operational costs, however was down by 470bps vis--vis prior year levels. Company further increased stake in Delectable Technologies during the quarter, acquiring second tranche of 1,964 compulsorily convertible preferred shares of Rs. 10 each....
|2020-11-11||ITC Ltd. +||SMC online||187.10||187.10 (16.44%)|
ITC Ltd.'s profit misses estimates, Q2 PAT declines 20% to Rs 3,232 cr Net sales fell 3.81% to Rs 11,098.24 crore in Q2 September 2020 over Q2 September 2019. Profit before tax (PBT) declined 11% to Rs 4,274.32 crore during the period under review....
|2020-11-09||ITC Ltd. +||Axis Direct||172.80||215.00||172.80 (26.07%)||Target met||Buy|
Maintain BUY with a revised TP of Rs. 215 (Rs. 243 earlier) as we tweak our FY21/22E to factor in H1 performance. However, undemanding valuations, +5% dividend yield and visible recovery across key businesses makes it an attractive bet.
|2020-11-09||ITC Ltd. +||Nirmal Bang Institutional||172.80||215.00||172.80 (26.07%)||Target met||Buy|
ITC Ltd.- 2QFY21 Result Update - Broad-based sequential recovery; Comfortable valuation; Maintain Buy
Nirmal Bang Institutional
ITC Ltd's (ITC) 2QFY21 standalone topline (adjusting for excise duty) declined by 4.1% YoY to Rs111.8bn (est. Rs113.64bn). EBITDA was down by 11% at Rs40.6bn (est. 13.3% decline to Rs39.55bn). Sector: FMCG Adj. PAT declined by 19.7% YoY to Rs32.32bn (est. 18.4% decline to Rs32.8bn). Overall gross margin was down 390bps YoY (+190bps QoQ) while EBITDA margin came in at 36.3%, down 280bps YoY (est. CMP: Rs174 34.8%). Cigarette (Cig.) net sales declined by 3.9% YoY to Rs51.2bn. We believe that calculated cig. volume would have declined by ~12% YoY (est. 8% cig. volume decline). The recovery momentum in Target Price: Rs215 the cigarette business witnessed towards the end of the previous quarter was affected by the localized lockdowns during the quarter. Easing of restrictions, innovative launches and reach Upside: 24%...
|2020-11-08||ITC Ltd. +||ICICI Securities Limited||173.95||225.00||173.95 (25.24%)||3.28||Buy|
ICICI Securities Limited
Q2 revenues grew 14.6% YoY to | 5038 crore due to 19.8% YoY growth in domestic formulations to | 2090 crore. US revenues grew 10.1% YoY to | 1049 crore. RoW markets grew 28.2% YoY to | 828 crore. EU grew 30.0% YoY to | 247 crore. API segment grew 20.4% YoY to | 189 crore. EBITDA margins improved 266 bps YoY to 23.4% on account of a sharp drop in other expenditure amid Covid, partly offset by lower gross margins due to change in product mix. Subsequently, EBITDA grew 29.4% YoY to | 1177 crore. PAT...
|2020-11-07||ITC Ltd. +||Prabhudas Lilladhar||172.80||254.00||172.80 (26.07%)||16.59||Buy|
ITC's FMCG business reported 18.4% comparable sales growth and 9.7% EBIDTA margins even as 11.5% cigarette volume decline was disappointing. Overall business recovery has set in across segments, although cigarettes, Hotels and Leaf tobacco will have a delayed recovery. We believe strong sales momentum in Foods, Hygiene and success in the frozen snacks and Vegetables is a long term positive given that ITC's margins have started reflecting impact of cost control and scale. We believe ITC would be one of the key beneficiary of an uptick in consumer demand given the depth and...
|2020-08-09||ITC Ltd. +||Dolat Capital||203.05||213.00||203.05 (7.29%)||Target met||Buy|
All factories manufacturing FMCG products including cigarettes, paperboards and paper, as well as processing of leaf tobacco are currently operational (80-85% of normal levels) and are able to completely service customer demand. The only dampener now is localised lockdowns. Agrioperations of the company and engagement with farmers for sourcing various commodities driven by e-Choupal commenced during lockdown itself. To reassure guests at iconic Hotels, the WeAssure programme has been launched to reinforce ITC Hotels' commitment towards health, hygiene and safety. ITC has a strong balance sheet and continues to focus...
|2020-07-28||ITC Ltd. +||Geojit BNP Paribas||194.15||225.00||194.15 (12.21%)||3.28||Buy|
Geojit BNP Paribas
EBITDA margin contracted to 28.0% from 40.2% in Q1FY20, primarily due to raw material inflation (tobacco leaf), increased transportation costs, and high losses from hospitality business. We expect strong cash flows generation and operations being back on track in the coming quarters. We continue to remain optimistic and reiterate our BUY rating on the stock with a revised target price of Rs....
|2020-07-27||ITC Ltd. +||Axis Direct||196.40||243.00||196.40 (10.92%)||11.54||Buy|
|2020-07-27||ITC Ltd. +||SMC online||196.70||196.70 (10.75%)||Results Update|
ITC Ltd.s profit misses estimates, Profit Falls 25% but FMCG Revenue Rises 10.3%, Localized lockdowns are posing operational challenges Unprecedented disruptions in economic activity caused by nationwide lockdowns in the wake of COVID-19 pandemic weighed on the Company's performance during the quarter. Hotels, Cigarettes, ESPB and Paperboards & Packaging Businesses were impacted the most. FMCGOthers Segment delivered a strong performance driven by Staples, Convenience Foods and Health & Hygiene products, leveraging the strong equity of the Company's brands and a robust portfolio of relevant and innovative products. Other than the Hotels segment, progressive...
|2020-07-25||ITC Ltd. +||HDFC Securities||199.60||236.00||199.60 (9.14%)||8.33||Buy|
HSIE Results Daily: ITC, Ambuja Cements, AU Small Finance Bank, Mphasis, ABB India, Radico Khaitan, Zensar
Mphasis:Mphasis' valuation discount to mid-tier IT is expected to compress, supported by an improving mix of high-growth Direct Core limiting the impact from DXC and on FCF yield >7.5%. Our target price is Rs 1,280, 16x (15x earlier and 5-year average at 15x) Jun-22E EPS, following ~6% EPS estimate increase for FY22E. ABB India:We maintain SELL on ABB India Ltd. (ABB) with an increased target price of Rs 827/sh (42x), rolling forward to 2QCY22. Radico Khaitan:We continue to believe in quicker recovery in Radico. The beat in 1Q and gross margin expansion (~200bps) have led to our EPS estimate increasing by 13/10/9% for FY21/FY22/FY23. We value Radico at 18x P/E on Jun-22E EPS and derive a target price of Rs 426. Maintain ADD. Zensar Technologies:We increase our P/E multiple to 12x (~8% discount to 5Y average) vs. 10x earlier. Our TP of Rs 170 is based on 12x June-22E EPS. The stock trades at a P/E of 13.0/10.5x FY21/22E EPS, which is ~20% discount to 5Y average. Maintain ADD. ITC: We maintain our EPS estimate for FY21/FY22/FY23 as we expect a recovery in the company 2HFY21 onwards. We value ITC on SoTP and arrive at a target price of Rs 236 (implied P/E of 18x P/E Jun-22E EPS). Maintain BUY. Ambuja Cements: We expect buoyant pricing in north markets, subdued energy cost outlook and healthy cost controls, to drive 8% EBITDA CAGR (CY19-22E). We maintain BUY with a revised target price of Rs 230. AU Small Finance Bank: We maintain our ADD rating with a revised...
|2020-07-25||ITC Ltd. +||ICICI Securities Limited||199.60||250.00||199.60 (9.14%)||14.76||Buy|
ICICI Securities Limited
Q1FY21 revenues grew 14% YoY to | 1671 crore (I-direct estimate: | 1651 crore) mainly due to 18.9% YoY growth in biosimilars to | 692 crore. The Generics segment grew 16.1% YoY to | 599 crore. Research services segment remained flat YoY at | 422 crore. EBITDA margins contracted 512 bps YoY to 24.7% (I-direct estimate: 22.2%) mainly due to lower gross margins and higher R&D; costs. EBITDA declined 5.5% YoY to | 413 crore against I-direct estimate of | 366 crore. Adjusted PAT declined 27.6% YoY to | 149 crore (I-direct estimate: | 127 crore). Delta vis--vis EBITDA was due...
|2020-07-25||ITC Ltd. +||Motilal Oswal||199.60||200.00||199.60 (9.14%)||Target met||Neutral|
Expected dividend yield of 5-6% over the next two years and the apparent relief of cigarette sales bouncing back to near pre-COVID levels are not clear positives due to (a) persistent global ESG concerns on cigarettes (85% of EBIT in FY20), (b) overhang of further GST increase on cigarettes, (c) ITCs valuation premium to global tobacco majors like Philip Morris (trading at 15.2x one-year forward P/E) and BAT (at 8.1x), and (d) continuance of weak earnings trajectory (6.6% PBT CAGR over the last 5 years). PAT growth has still been better in high single-digits led by the Expected dividend yield of 5-6% over the next two years and the apparent relief of cigarette sales bouncing back to near pre-COVID levels are not clear positives due to (a) persistent global ESG concerns on cigarettes (85% of EBIT in FY20), (b) overhang of further GST increase on cigarettes, (c) ITCs valuation premium to global tobacco majors like Philip Morris (trading at 15.2x one-year forward P/E) and BAT (at 8.1x), and (d) continuance of weak earnings trajectory (6.6% PBT CAGR over the last 5 years).
|2020-07-25||ITC Ltd. +||Nirmal Bang Institutional||196.40||213.00||196.40 (10.92%)||Target met||Accumulate|
Nirmal Bang Institutional
FMCG-Others reduces pain seen in other businesses NBIE Values your patronage- Vote for The Tam in the Asia Money poll 2020. Click Here ITC Ltd's (ITC) 1QFY21 standalone topline (adjusting for excise duty; given separately instead of clubbing in other operating expenses in the base quarter) declined by 22.5% YoY to Rs89bn (est. 25.7% decline to Rs85.5bn). EBITDA declined by 42% YoY to Rs26.5bn (est. 36.5% decline to Rs29bn) while the Adj. PAT declined by relatively lower 26.2% YoY to Rs23.4bn (est. 26% decline to Rs23.5bn), helped by higher other income (up 44.6% YoY) and lower tax rate at 25.1% vs 34% in the base quarter. Sector: FMCG...
|2020-07-24||ITC Ltd. +||Dolat Capital||199.60||213.00||199.60 (9.14%)||Target met||Buy|
A 970bps decline in margin in the cigarette business indicates that the product mix was unfavorable and economy brand contribution must have increased during the quarter. Significant increase in duty has resulted in widening of price gap between ITC and smuggled cigarettes. We believe that this would continue to pressurize volume growth even after lockdown re-opens. FMCG business exhibited satisfactory performance with 10% revenue increase and 120bps margin expansion....
|2020-07-24||ITC Ltd. +||Prabhudas Lilladhar||193.35||262.00||193.35 (12.67%)||20.27||Buy|
Discretionary OOH categories declined 25%, Margins expand 170bps to 7.6% ITC PAT beat has been led by better than expected performance in Cigarettes, Agri and Paperboard business and 44% growth in other income. FMCG story remains intact with 34% sales growth and 170bps margin expansion led by segments like Atta, Biscuits, Noodles, Dairy and Hygiene products. Cigarette business is expected to report improved nos as June exit sale show recovery close to Pre Covid sales. Hotels business is expected to remain under significant pressure in near term with poor chance of being in black for next...
|2020-07-13||ITC Ltd. +||Axis Direct||197.55||230.00||197.55 (10.28%)||5.58||Buy|
ITC is a market leader in traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports and is rapidly gaining share in the FMCG segment. ITC is a market leader in traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports
|2020-07-02||ITC Ltd. +||Geojit BNP Paribas||207.55||260.00||207.55 (4.96%)||19.35||Buy|
Geojit BNP Paribas
With operations back on track and strong cash flows generation, the company is expected to fare better than its peers. We continue to remain optimistic on ITC's performance and reiterate our BUY rating on the stock with a TP of Rs. 260 based on SOTP valuation. Drastic demand drop impacts topline Q4FY20 standalone revenue stood at Rs. 11,300cr (-6.3% YoY). FMCG revenue declined 5.0% YoY to Rs. 8,314cr, of which Cigarettes business revenue stood at Rs. 5,131cr (-6.5% YoY). Hotels revenue dropped 8.4% YoY to Rs. 466cr, while from Agri...