ITC Ltd. share price target

Total FMCG segment revenue rose 5.1% to Rs 9060 crore during the period under review. In the FMCG segment, cigarettes revenue increased by 3.5% YoY to Rs 5498 crore while the revenue from other FMCG segment improved by 7.5% YoY to Rs 3562 crore during the quarter....

Though we believe cigarettes volumes would recover to FY20 levels in the next two years with stable taxation, it would remain in negative growth territory in the long run. Further, pricing growth in cigarettes also has its limitation, which would also restrict pricing growth. Further, moderate tax increase once in two to three years cannot be ruled out. We expect muted...

ITC's 3QFY21 results were broadly in-line, with cigarette volumes declining ~7% YoY. Unlike other discretionary categories, no sharp sequential improvement is seen in Cigarettes. There was no respite on Cigarette EBIT either, with 8.1% YoY decline posted for 3Q implying that Cigarette EBIT growth has been below 10% for 24 of the past 26 quarters now. Growth in the FMCG-Others business has also tapered to the single digits on a reported basis as in-home consumption is no longer growing at the same pace. A sequential dip was reported in FMCG-Others margins, likely due to...

Maintain BUY with a revised TP of Rs. 260 (Rs. 215 earlier) as we revise our FY21/22E estimate and roll over to FY23E numbers. However, undemanding valuations, +5% dividend yield and visible recovery across key businesses makes it an attractive bet.

ITC Limited (ITC) result was below our expectations. Overall revenue reached pre-covid levels. FMCG: others continues to grow at strong double digit driven by positive tailwind in health, hygiene and food portfolio. Revenue from Cigarettes grew at 4%YoY (vs -4% in 2QFY21). Recovery in Hotel business remained below expected; revenue stood at 43% of 3QFY20. However, ITC turned EBITDA positive on Hotels segment during Dec'20. Agri Business also grew at 18% driven by trading opportunities in rice, soya and wheat for Aashivad atta. Revenue from Paper segment continues to decline driven by subdued demand in domestic market. On margins; except FMCG-non-cigarette business, all other...

ITC's FMCG business continues its upward trajectory with 11% comparable sales growth and 9.2% EBIDTA margins. Cigarette volume continue to disappoint with 5% decline. Hotel business also turned EBITDA positive in Dec'20 though we do not expect it to impact overall EBITDA significantly. We believe strong sales momentum in Foods, Hygiene and growth across the...

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...

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.