ITC Ltd. share price target

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...

Reiterate BUY. No change in estimates and TP of Rs 382, valued at 32x (~20% discount to sector) Sep-20E EPS. ITCs revenues grew by 14.7% to Rs 110.9bn (vs. est. of Rs 106.8bn) driven by cigarette revenue growth of 10.4% (exp. 8%) with volume growth of ~5.5% (exp. 4.5%). Cig. EBIT growth of 9.5% trailed value growth owing to a one-off (1% growth impacted) on account of damage of stock during Kerala floods (insurance claim will be reimbursed in 3Q). Non-cig. business grew by 12% (in-line). EBITDA/APAT grew by 12/13% vs. exp. of 12/12%.

Cigarette EBIT was marginally impacted by stock damage due to floods in Kerala and some costs relating to the shift to new graphic health warnings on the packs from 1 Sep18. Cigarette EBIT, thus, grew at a relatively slow rate of 8.7% YoY (v/s sales growth), with the margin contracting 110bp YoY to 71.2%. INR585m v/s INR205m in the year-ago period. Revenues of Agri Business/Paperboards, Paper & Packaging/Hotels grew by 12.8%/8.8%/20.8%. EBITDA margin expanded 160bp YoY to 38.