ITC Ltd. share price target

Cigarette volume growth ahead of street expectations, FMCG Business continues with its profitable growth, Other Business supporting overall profitability

ITC's cigarette segment posted robust volume growth of ~8% in Q3FY19 led by higher growth of 64 mm segment (~40% of cigarette volumes). 69 mm segment contributed 38-39% of cigarette sales volume and remaining ~20% was contributed by Long & King size segments. All other businesses reported double digit sales growth resulting in overall revenue growth of 14.9% YoY during the quarter Operating profit grew 11.2% to | 4,325.8 crore supported by Cigarette, FMCG & Paperboard segments. FMCG EBIT increased from...

Reiterate BUY. Our TP is Rs 383, at 32x Dec-20E EPS. ITCs revenues grew by 15% (exp. 11%) driven by non-cigarette portfolio growing by 17% (exp. 13%). Cigarette (cig) revenues grew by 9.6% (exp. 8.5%) driven by 7 year high volume growth of ~7.5% (exp. 6%; -4% in 3QFY18). Although cig. EBIT growth was a tad bit slower at 8.8%. EBITDA/ APAT grew by 11/14% vs. exp. of 12/11%. The co. clocked its fastest APAT growth in 17 quarters!

23 January 2019 grew 9.6% YoY. EBIT margin contracted by 50bp YoY, led by higher input cost and higher salience of capsule cigarettes in the sales mix. Consequently, segmental EBIT growth of 8.8% YoY lagged sales growth during the quarter. v/s INR470m in the year-ago period. Revenue of Agri Business/Paperboards, Paper & Packaging/Hotels grew by 25.7%/20.5%/11.7% YoY.

ITC reported a steady quarter with broad-based growth across segments. Change in Estimates | Target | Reco Cigarette volumes grew a healthy 7.5% with 8.8% EBIT growth as stable prices propelled steady increase in consumer demand. FMCG business...

ITC Ltd Q2FY19 results Comment Revenue increased by 3.19% to Rs. 10891.23 Cr in Q2FY19 when compared to the previous quarter. Also, it rose by 6.5% when compared with Q2FY18.

ITC has reported largely an in-line performance in Q2FY19 with an estimated cigarettes volume of ~7% YoY. Despite a robust YoY growth in cigarettes volume, cigarettes revenue declined by 2% QoQ. Further, EBIT growth at 9% YoY is slightly disappointing. Total EBIDTA growth stood at healthy 12% YoY helped by 77% growth in FMCG others segment. PAT grew by 12% YoY, in line with our estimate. At CMP, the stock trades at 25x FY20E earnings, which is reasonable considering the...

ITC's cigarette segment posted robust volume growth of ~6% in Q2FY19. Cigarette volumes had grown 1.5% in Q1FY19 after three consecutive quarters of volume de-growth. In addition to strong growth from the cigarette segment, sales growth of 7.3% YoY was supported by FMCG, agri business, paperboard & hotels business growth of 12.7%, 12.8%, 8.8% & 20.8%, respectively Operating profit grew 11.8% to | 4,206 crore supported by 8.7% & 13.4% EBIT growth in cigarette & paperboard segments. FMCG EBIT...