ITC Ltd. share price target

Benign taxation, inexpensive valuations (20x FY24E EPS), 5% dividend yield makes us BUYers of the stock. Our TP is revised toRs. 295 (earlier Rs 280).

Cigarette volume rose 9% YoY in 4QFY22 (our view), implying 1.9% growth on 3-year CAGR basis – disruption in the month of January was managed well. FMCG revenues grew 12% YoY with management using multiple levers to offset inflationary pressure; performance in discretionary and OOH categories recovered well.

We recommend a BUY on the stock with a target price of Rs 295/share, implying an upside of 10% from the CMP.

Trading BUY

EBITDA grew 18.2% YoY to Rs. 5,102cr, however EBITDA margin contracted 330bps YoY to 30.7% due to unprecedented input cost inflation. Subsequently, PAT grew 12.7% YoY to Rs. 4,156cr, slightly...

Sales of FMCG-Others segment has gone up 9.24% to Rs 4,099.47 crore (accounting for 21.04% of total sales). Sales of Hotels segment rose 99.11% to Rs 495.53 crore (accounting for 2.54% of total sales). Sales of Agri Business segment has gone up...