ITC Ltd. share price target

Reiterate BUY. Our TP is Rs 358, at 32x Mar-20E EPS. ITCs gross revenue grew by 3.6% vs. our expectation of 6.5%. Cigarette value growth was ~6% with volume contraction of ~3% (inline). EBITDA/ APAT grew by 7/10% vs. expectation of 10/10%. Despite steep rise in taxes, ITC has improved cigarette performance consistently. Sequentially volume decline is abating and we expect positive volume growth in FY19. EBIT growth at 8% is encouraging (margin expansion) despite downtrading.

ICICI Securities Ltd | Retail Equity Research ITC posted decline in net revenue (net of excise duty for base quarter and in current quarter) by 4.8% YoY to | 10,586.7 crore. Cigarette segment revenue numbers are not comparable. However, FMCG & hotels business saw growth of 5.8% & 5.6%, respectively. Agri business & paperboard segment saw de-growth of 5.7% and 5.2%, respectively. Cigarette volume declined ~2% after the steep price hike taken by company to pass on the GST increase in July 2017...

Cigarette volume decline is likely to have been ~2% YoY. Calculated cigarette revenue declined ~ 4.3% YoY, while cigarette EBIT grew ~8% YoY(~ 800bp expansion of EBIT margin). There have been no price increases over the past 4-5 months, particularly as the budget left taxes on cigarette sun changed. However, there is a risk of a change in cigarettes rates in the subsequent GST Council meetings

The Company delivered steady performance during the quarter despite a challenging operating environment marked by severe pressure on legal Cigarette industry volumes and limited trading opportunities in Agri Business. While the FMCG industry witnessed progressive recovery during...

We see ITC as a pocket of opportunity stock underperformance to reverse, given expected easing in regulatory noise post GST. We expect 9% sales and 10% EPS CAGR over F17-20E. Maintain BUY with rolled over TP of Rs 330 based on forward P/E of 30x.

Reiterate BUY. Our TP is Rs 358, at 32x Dec-19E EPS. ITC posted an in-line quarter. Net revenues grew by 7.7% YoY at Rs 99.5bn, in-line with our expectation of 8.1%. EBITDA and APAT grew 10% and 6%. With higher indirect tax incidence post GST, cigarette revenues grew merely ~5%, impacted by ~4% volume contraction (vs est. 2%). Due to higher share <64mm cigarette, the price hike of 10-11% was not visible fully. Cigarette volume pressure was across cigarette sizes.

ICICI Securities Ltd | Retail Equity Research ITC reported net revenue growth (net of excise duty for base quarter as well as in current quarter) of 5.7% YoY to | 9672.6 crore. Yearly numbers for cigarette segment are not comparable. FMCG & Hotels business witnessed a growth of 11.8% and 9.2% respectively. However, Agri buness & Paperboard segment saw de-growth of 8.4% and 4.2% respectively. Cigarette volume declined by 4% after...

ITC Ltd Q3FY18 results comment Revenue decreased by 5.42% to Rs. 9672.57 Cr in Q3FY18 when compared to the previous quarter.

Results Largely In-line; Budget A Key Event to Watch Out For ITC has delivered largely an in-line performance in 3QFY18. While reported net revenues grew by 5.7% YoY to Rs96.7bn (vs. our estimate of Rs100.5bn), EBITDA increased by 10.4% YoY to Rs38.1bn (vs. our estimate of Rs37.4bn). Reported net profit surged by 16.8% YoY to Rs30.9bn (vs. our estimate of Rs28.3bn), mainly due to exceptional income of Rs4.1bn (Rs2.7bn post tax) pertaining to reversal of Entry Tax levied by Tamil Nadu following a favourable Supreme Court order. Adjusted for this, net profit came in line with our estimate. We expect ITC to post 9.6% revenue and 10.8% earnings CAGR through FY17-20E. Based on...