ITC Ltd. share price target

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....

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....

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.

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...

ITC Limited (ITC) result was in-line with our estimates. Business recovery in Cigarettes has been better than expected driven by gradual unlocking of economy and improved consumer sentiment. However, performance of Hotel segment remained subdued; current quarter revenue stands at 19% of last year. Positively, Branded FMCG and Agri business continued its outperformance with high double digit value growth. Revenue from Paperboard and Packaging segment also recovered strongly compared to last quarter. Excluding Branded FMCG and Agri segment, all other segments witnessed decline in operating profits primarily led by negative operating leverage. Based on...

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...

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...

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....

ITC reported a better than expected Q1FY21 revenue at Rs 9,436crs vs est. 9,205crs (3% higher vs our estimates), it de-grew 17% YoY impacted by disruptions in operations due to nationwide lockdowns.

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...